US Govt saves ailing Citigroup

In a dual-lifeline aimed at reviving the bank - once America's largest - the Treasury, Federal Reserve and Federal Deposit Insurance Corporation will protect the possibility of "unusually large losses" on the most illiquid assets on its book, as well as providing a further large capital injection. Citigroup's share price was savaged last week, diving more than 60% to close at $3.77. The $20bn capital injection will come in exchange for preferred stock, paying an 8% dividend, and is in addition to the $25bn Citi received last month. Citi will also issue the Government preferred shares,...