Citigroup reaches aid deal with Government

Written by Associated Press | New York | Updated: Feb 28 2009, 00:14am hrs
Citigroup says it has reached a deal that will give the US Government up to a 40 percent stake in the struggling bank.

The company also says it recorded a goodwill impairment charge of about USD 9.6 billion due to deterioration in the financial markets.

The increase in government ownership will not require additional taxpayer money. The government currently holds about an 8 per cent stake in the New York-based bank.

One of the hardest hit banks by the ongoing credit crisis, Citi has already received USD 45 billion in cash from the Government and guarantees protecting it from the bulk of losses on USD 300 billion of risky investments.