Government unveils bold plan to rescue Citigroup

NF Reporter · 11-24-2008, 02:23 AM

AP - The government unveiled a bold plan Sunday to rescue Citigroup, injecting a fresh $20 billion into the troubled firm as well as guaranteeing hundreds of billions of dollars in risky assets.

Government unveils bold plan to rescue Citigroup

waltky · 05-02-2009, 11:35 PM

Granny says, "Dey all a bunch o' Madoff's...

Citi may need $10 billion more - report
May 1, 2009: Wall Street Journal reports that Citigroup may need an additional $10 billion to meet the government's capitalization requirements.

Quote:

Citigroup Inc. may need to generate up to $10 billion in new capital to meet the requirements of the U.S. government's stress tests, the Wall Street Journal reported on its Web site Friday. Like other financial institutions, the bank is in talks with the Federal Reserve about whether it needs more capital.

Citigroup may need less if regulators accept its arguments about its financial health. In a best-case scenario, Citigroup could have a roughly $500 million cushion above what the government requires, the paper reported, citing unnamed sources. Calls to Citigroup were not immediately returned. A spokesman for the U.S. Treasury had no comment.

The government created the stress tests as a way to measure the capital needs of the nation's 19 largest banks and their ability to withstand a variety of economic scenarios. According to a government source, the results are expected to be released to banks on Tuesday and publicly on Thursday.

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