Monday, November 24, 2008

US unveils $20bn Citigroup aid plan

Citigroup has posted losses for the past
four financial quarters [GALLO/GETTY]

The US treasury department has announced that is is investing $20bn in Citigroup Inc as one of a series of actions to help the bank.

The US government will take preferred shares in the company as part of the arrangement.

In a late Sunday night announcement, the treasury department said it and the Federal Deposit Insurance Corp will provide protection against losses in a pool of about $306bn worth of loans and securities on Citigroup's balance sheet.

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