The US Government now has a 36% stake in the troubled Citigroup bank up from the previous 8%, the Treasury
announced earlier in March. The higher stake comes with more responsibilities as this will mean the US
Government will have a more powerful influence over the bank. However, the day-to-day operations and control
of the bank will still be handled by the Citigroup’s board. This move will help raise the bank’s private capital
and still leave out extra taxpayer investment. Citigroup was one of the worst hit banks by the credit crunch.
The bank was bailed out in a deal worth $45 billion by the US Government. The bank’s risky loans were also
guaranteed with an extra $306 billion.

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Posted by Shue on April 25th, 2009 :: Filed under Citygroup
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