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Citigroup Reaches Aid Deal With Government

NEW YORK (AP) - Citigroup says it has reached a deal that will
give the government up to a 40 percent stake in the struggling
The company also says it recorded a goodwill impairment charge
of about $9.6 billion due to deterioration in the financial
The government will convert some of its preferred stock in Citi
to common shares if the New York-based bank along with other
private investors.
The increase in government ownership will not require additional
taxpayer money. The government currently holds about an 8 percent
stake in Citi.
One of the hardest hit banks by the ongoing credit crisis, Citi
has already received $45 billion in cash from the government and
guarantees protecting it from the bulk of losses on $300 billion of
risky investments.

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  • by steve Location: irvine on Feb 27, 2009 at 07:37 AM
    Well more government meddling welcome to the USSR comrades.


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