Citigroup Gets Massive Bailout With Potential Losses of USD 306 Billion
nak compare dgn msia kita punya stimulus package pun baru bape billion je..
NEW YORK: The US government has bailed out Citigroup Inc, agreeing to shoulder most of the potential losses on US$306 billion (RM1.11 trillion) of high risk assets, in its most sweeping rescue of a US bank yet in the global economic crisis.
The government will also inject US$20 billion of new capital, on top of US$25 billion it just put into the bank, and receive preferred shares with an 8% dividend. Citigroup received the latest infusion after its shares plunged 60% in the last week, amid worry it lacked enough capital to survive.
Citigroup will not have to replace chief executive Vikram Pandit or other top management, but the government will have the final say on executive pay agreements. The bank has also agreed to try to modify troubled mortgages in the US$306 billion portfolio as the government tries to keep homeowners out of foreclosure.
The package may become a template for other US banks expected to face growing losses as the economy sinks into recession. Credit losses once concentrated in mortgages are already bleeding into other areas such as credit cards and commercial real estate.
Citigroup Gets Massive Bailout With Potential Losses of USD 306 Billion
nak compare dgn msia kita punya stimulus package pun baru bape billion je..
NEW YORK: The US government has bailed out Citigroup Inc, agreeing to shoulder most of the potential losses on US$306 billion (RM1.11 trillion) of high risk assets, in its most sweeping rescue of a US bank yet in the global economic crisis.
The government will also inject US$20 billion of new capital, on top of US$25 billion it just put into the bank, and receive preferred shares with an 8% dividend. Citigroup received the latest infusion after its shares plunged 60% in the last week, amid worry it lacked enough capital to survive.
Citigroup will not have to replace chief executive Vikram Pandit or other top management, but the government will have the final say on executive pay agreements. The bank has also agreed to try to modify troubled mortgages in the US$306 billion portfolio as the government tries to keep homeowners out of foreclosure.
The package may become a template for other US banks expected to face growing losses as the economy sinks into recession. Credit losses once concentrated in mortgages are already bleeding into other areas such as credit cards and commercial real estate.
Citigroup Gets Massive Bailout With Potential Losses of USD 306 Billion
nak compare dgn msia kita punya stimulus package pun baru bape billion je..
NEW YORK: The US government has bailed out Citigroup Inc, agreeing to shoulder most of the potential losses on US$306 billion (RM1.11 trillion) of high risk assets, in its most sweeping rescue of a US bank yet in the global economic crisis.
The government will also inject US$20 billion of new capital, on top of US$25 billion it just put into the bank, and receive preferred shares with an 8% dividend. Citigroup received the latest infusion after its shares plunged 60% in the last week, amid worry it lacked enough capital to survive.
Citigroup will not have to replace chief executive Vikram Pandit or other top management, but the government will have the final say on executive pay agreements. The bank has also agreed to try to modify troubled mortgages in the US$306 billion portfolio as the government tries to keep homeowners out of foreclosure.
The package may become a template for other US banks expected to face growing losses as the economy sinks into recession. Credit losses once concentrated in mortgages are already bleeding into other areas such as credit cards and commercial real estate.
