Federal regulators took extreme steps to prop up Citigroup, backing $306 billion of mainly real estate loans and securities and directly injecting money by buying $20 billion of preferred stock. The $20 billion of stock will pay an 8% dividend. Regulators will also get an additional $7 billion of preferred stock. Citigroup will basically halt dividend payments for 3 years and limit some executive pay. It will also implement the FDIC’s loan modification plan, which is close to the one it had already announced for itself.
US Bails Out Citigroup
By Ben Popken November 24, 2008
- bungling the deal Citigroup Forgot To Compensate 23,000 Consumers For Abusive Foreclosure Practices, Sending Checks Now
- well that's settled Citi To Pay $7B To Settle Mortgage Investigation; Includes $2.5B In Consumer Relief
- providing overdue relief CitiFinancial, CitiMortgage To Pay $28.8M Over Mortgage Servicing Issues
- Mega Merger Moving Forward Anheuser-Busch InBev, SABMiller Finalize Merger, Agree To Sell MillersCoors Brand To Molson For $12B
- cracking down on unfair practices Citigroup Facing Federal Investigation Into Student Loan-Servicing Practices