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U.S. to control up to 36% of Citi

Posted on February 27, 2009 by Kendall Harmon

The U.S. government waded deeper into the bailout of one of the nation’s largest banks Friday when it announced a deal that will give it control over as much as 36% of Citigroup’s common stock.

Citigroup shares tumbled 46% in premarket trading.

The deal will convert preferred shares that Treasury already holds in Citigroup for common shares, a shift that is designed to improve the embattled bank’s capital base, which in turn will hopefully allow it to increase its lending.

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Posted in * Economics, Politics, Economy, Office of the President, Politics in General, President Barack Obama, The 2009 Obama Administration Bank Bailout Plan, The Banking System/Sector, The National Deficit, The September 2008 Proposed Henry Paulson 700 Billion Bailout Package, The U.S. Government, Treasury Secretary Timothy Geithner

One comment on “U.S. to control up to 36% of Citi”

  1. Jeffersonian says:
    February 27, 2009 at 9:26 pm

    Now just keep chanting, “He’s not a marxist, he’s not a marxist…”