Archive for the ‘Banking News’ Category

Citigroup Bailout Reassures the Financial Market

Thursday, November 27th, 2008

With the US government helping Citigroup in the bailout process, shares of Citigroup climbed up by more than 50%. The US Treasury is ready to invest $20bn (£13.4bn) in return for favoured shares for the ailing Banking group. Loans and securities on Citigroup’s books have been guaranteed up to $306bn (£205bn) by the Treasury and Federal Deposit Insurance Corp.

The bailout of the Citigroup by the US government was received with positive results from the equity markets. The latest plan is followed with an investment of $25bn of public funds in the bank. Last week the shares of Citigroup plummeted more than 60% last week and its market value dropped to $20.5bn compared to $270bn in 2006. (more…)