Citigroup to give U.S. a 34% stake on Thursday 30 July
Tommorrow, the US Government will become Citigroup’s (stock quote: C) largest shareholder, with a 34% holding. This news had a impact on the market, since Citi´s shares are currently rising 4%.
Reuters informed that the U.S. government will officially take a 34 percent equity stake in Citigroup Inc on Thursday, becoming the bank’s largest shareholder in connection with a February bailout.
The change follows the completion of two exchange offers designed to bolster the capital position of the nation’s third-largest bank, widely considered the most troubled of the biggest U.S. lenders.
Investors have agreed to swap $32.8 billion of preferred securities for common stock, and the government will swap $25 billion, the New York-based bank has said.
Citigroup conducted the offers after heavy credit losses and writedowns prompted a series of bailouts, including a $45 billion injection of taxpayer funds from the Troubled Asset Relief Program (TARP).
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