Mismanaged Citigroup Gets A Bailout From The Feds

By: Joel Irving

The U.S. Department of The Treasury and the FDIC have agreed to provide protection against losses on a large asset pool of approximately $306 billion dollars in loans and securities backed by residential and commercial real estate and other related assets that will remain on Citigroups's balance sheet. Moreover, the Treasury will invest $20 billion dollars in Citigroup from the Troubled Asset Relief Program in exchange for preferred stock with an 8% dividend to the Treasury. More...