Citigroup Gets Massive Bailout With Potential Losses of USD 306 Billion

scaryla skrg besar cam citibank pun bleh loss usd 306 billion....
nak compare dgn msia kita punya stimulus package pun baru bape billion je..

NEW YORK: The US government has bailed out Citigroup Inc, agreeing to shoulder most of the potential losses on US$306 billion (RM1.11 trillion) of high risk assets, in its most sweeping rescue of a US bank yet in the global economic crisis.

The government will also inject US$20 billion of new capital, on top of US$25 billion it just put into the bank, and receive preferred shares with an 8% dividend. Citigroup received the latest infusion after its shares plunged 60% in the last week, amid worry it lacked enough capital to survive.

Citigroup will not have to replace chief executive Vikram Pandit or other top management, but the government will have the final say on executive pay agreements. The bank has also agreed to try to modify troubled mortgages in the US$306 billion portfolio as the government tries to keep homeowners out of foreclosure.

The package may become a template for other US banks expected to face growing losses as the economy sinks into recession. Credit losses once concentrated in mortgages are already bleeding into other areas such as credit cards and commercial real estate.

Citigroup has the farthest international reach of any US bank, with operations in more than 100 countries. The bank was widely perceived to be too big to be allowed to fail, because any collapse could cause financial havoc around the globe.


slumbeRAJA said...

mmg dasyat bro. dgr cite ramai pekerja citibank bakal diberhentikan kerja. mmg kebanyakkan conventional bank kene tempias ekonomi nie.

Mberenis said...

Most people don't realize how much money there is out there. During economic times like this, there is more money to be had than ever. Because of the bailouts and economy, lenders are bending over backwards to bail you out too. Believe it or not, there is people getting tons of cheap money nowdays to start businesses, buy homes, pay off debt, and more. Bailouts for Everyone

Yanmie said...

ari tu tgk berita pun terkejut..dahsyat tul..pas nie mesti ramai pekerja yg akan d berhentikan keje..

zamz said...

ni bukan tempias2 lagi dah..mmg kena betul nih..
dgr2 kat msia pun ada yg dah kena maybe ada another round more will be affected

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