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US to bail out Citigroup

Nov 24 2008 07:22

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Washington - The US government said late on Sunday it will protect banking giant Citigroup against "unusually large losses" and give it $20bn from a financial rescue package approved by congress.

The announcement came after the Treasury Department, Federal Reserve and Federal Deposit Insurance Corporation reached an agreement with Citigroup to provide a package of guarantees to the struggling banking giant.

In a joint statement issued after the talks, the three agencies said they will provide Citigroup "protection against the possibility of unusually large losses on an asset pool of approximately $306bn of loans and securities backed by residential and commercial real estate and other such assets, which will remain on Citigroup's balance sheet."

- AFP

 
 
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