Late on Sunday, the U.S. government unveiled a bailout plan for Citigroup Inc, agreeing to shoulder most of the potential losses on $306 billion of high risk assets, in the latest attempt to restore confidence in the stricken financial system.
The government will also inject $20 billion of new capital, on top of $25 billion it just put into the bank, and receive preferred shares with an 8 percent dividend. Citigroup received the latest injection after its shares plunged 60 percent in the last week, amid worry it lacked enough capital to survive.
Perhaps it is just time to forbid firms from getting “too big to fail.”
Another nauseating rescue
From Reuters:
Late on Sunday, the U.S. government unveiled a bailout plan for Citigroup Inc, agreeing to shoulder most of the potential losses on $306 billion of high risk assets, in the latest attempt to restore confidence in the stricken financial system.
The government will also inject $20 billion of new capital, on top of $25 billion it just put into the bank, and receive preferred shares with an 8 percent dividend. Citigroup received the latest injection after its shares plunged 60 percent in the last week, amid worry it lacked enough capital to survive.
Perhaps it is just time to forbid firms from getting “too big to fail.”
Tags: Citbank, financial crisis
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