The U.S. government on Sunday announced a massive rescue package for Citigroup - the latest move to steady the banking giant, whose shares plunged in the past week on fears about its exposure to toxic mortgage securities. The plan has two key features: First, the U.S. Treasury and the Federal Deposit Insurance Corporation (FDIC) will backstop some losses against more than $300 billion in troubled assets. Second, the Treasury will make a fresh $20 billion investment in the bank. The government has already injected $25 billion into Citigroup as part of the $700 billion bailout passed by Congress in October. Investors liked the news. Citigroup shares gained 65% in morning trading. Major U.S. indexes soared at the start, with the Dow Jones industrial average climbing nearly 4%, while European markets were sharply higher. Read More
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