Citigroup to Receive a New Rescue Package From the US Government

Photos

Citigroup to announce job cuts of up to 50,000: CNBC

see larger image

uploaded by Amitjha

• 

  uploaded by Amitjha | add comment

• 

  uploaded by djermano | add comment

Federal regulators have approved of a new plan to further bail out Citigroup and protect billions of dollars worth of assets belonging to the ailing banking giant.

According to a report on CNN, the US government will secure more than $300 billion of Citibank assets as well as buy $20 billion in preferred shares that will pay the government an 8 percent dividend. The bank already received $25 billion under the government's initial bailout plan.

Citigroup execs and government officials met throughout the weekend to hammer out the details of the plan after Citigroup stock lost more than half its value last week. Citigroup stock has declined more than 80 percent this year alone.