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
- cracking down on unfair practices Citigroup Facing Federal Investigation Into Student Loan-Servicing Practices
- Billion-Dollar Tab Operators Of Scammy Payday Lender Ordered To Pay $1.26 Billion
- slap on the wrist JPMorgan Chase To Pay $614M In Settlement For Defrauding Federal Agencies