|
CNBC'S MOST SHARED
- WPP's Sir Martin Sorrell on the Ad Recession
- Unemployed? Bored? Make Money Playing Beer Pong
- Social Networking's 'Naked' Truth
- Warren Buffett's Complete Sun Valley CNBC Interview - Transcript and Video
- The View From Newark
- Preparing for Retirement
- Oil Price Dragging Market Lower
- Nikkei on Track to Break 6-Day Losing Streak
- Playing by Different Rules
- China Demands Currency Reform, France Backs Debate
- Bulls Get Summertime Blues, But It's Hot Fun for Bears
- UBS Finds Last-Minute Deal Elusive as Trial Looms
- As Banks Fail, Strong Institutions Become More Visible
- Will Bernanke Get Tapped for A Second Term?
- News Corp Denies Guardian Celebrity Wiretap Story
- It's Not the Wealthy Who Are Leaving California: Study
- Atlantic City Takes Hit as Pennsylvania Casino Opens
- Recession Special: Steak for $5!
- Digital Eyes Will Chart Baseball’s Unseen Skills
- Geek Squad V. Gizmodo
- Brandt: Google Chrome OS in the Post-PC Age
- Other People Are Weirder Than We Are
- Bank Failures: Is The Nightmare Over? (Video)
- California Here I Go? No.
- Roginsky: No More Mr. Nice Guy
- Commercial Conundrum
- Hirschhorn: Profiting from Persistence
- Why Save Orphans When You Can Save Newspapers?
Text Size 
The following is the text of a statement on Citigroup released jointly by the U.S. Treasury Department, Federal Reserve and Federal Deposit Insurance Corp on Sunday:
The U.S. government is committed to supporting financial market stability, which is a prerequisite to restoring vigorous economic growth. In support of this commitment, the U.S.
government on Sunday entered into an agreement with Citigroup to provide a package of guarantees, liquidity access and capital.
As part of the agreement, Treasury and the Federal Deposit Insurance Corporation will provide protection against the possibility of unusually large losses on an asset pool of approximately $306 billion of loans and securities backed by residential and commercial real estate and other such assets, which will remain on Citigroup's balance sheet. As a fee for this arrangement, Citigroup will issue preferred shares to the Treasury and FDIC. In addition and if necessary, the Federal Reserve stands ready to backstop residual risk in the asset pool through a non-recourse loan.
In addition, Treasury will invest $20 billion in Citigroup from the Troubled Asset Relief Program in exchange for preferred stock with an 8% dividend to the Treasury. Citigroup will comply with enhanced executive compensation restrictions and implement the FDIC's mortgage modification program.
With these transactions, the U.S. government is taking the actions necessary to strengthen the financial system and protect U.S. taxpayers and the U.S. economy.
We will continue to use all of our resources to preserve the strength of our banking institutions and promote the process of repair and recovery and to manage risks. The following principles guide our efforts:
- We will work to support a healthy resumption of credit flows to households and businesses.
- We will exercise prudent stewardship of taxpayer resources.
- We will carefully circumscribe the involvement of government in the financial sector.
- We will bolster the efforts of financial institutions to attract private capital.
Print
Email
Data is a real-time snapshot *Data is delayed at least 15 minutes