Citigroup Repays $20 Billion in Bailout Funds (C)
12/14/2009-Citigroup (NYSE:C) announced early Monday morning that it is repaying $20 billion in US government bailout funds it received during the credit crisis, in an effort to lower the government's influence in its operations.
Citigroup was among the hardest hit banks in the credit crisis having received a total of $45 billion in government aid through the TARP.
However, Citi only has to repay $20 billion since the remaining $25 billion was converted into a 34% ownership stake earlier this year.
The US Treasury says it will sell up to $5 billion worth of its Citigroup shares concurrently, and will close its entire 34% stake over the next 6 to 12 months.
Citi also said it will terminate its loss-sharing agreement with the government, and will no longer be considered a beneficiary of "exceptional financial assistance" under TARP beginning in 2010.
Shares of Citigroup are trading 2% lower in premarket action.
by Chip Brian