Citigroup completes agreement with US government
Citigroup says it finalized exchange offers with the U.S. government under which the latter will exchange up to $25 billion of Citi preferred securities for interim securities and warrants.
Citigroup says it finalized exchange offers with the U.S. government under which the latter will exchange up to $25 billion of Citi preferred securities for interim securities and warrants.
Citigroup said in February that it wanted to offer investors the option of exchanging preferred stock into common stock. The move would give the U.S. government a 34 percent stake in the New York-based bank.
The deal would boost Citi’s common equity, a benchmark the government is using to measure a bank’s ability to manage losses.
The government has invested a total of $45 billion in Citigroup through its Troubled Asset Relief Program, or TARP.
The public exchange will expire June 24, subject to an extension by Citi.
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