View more on these topics

Citi gets £13bn bailout

The US Government has stepped up its bank bailout scheme with a £13.3bn ($20bn) into Citibank.

The group, which last week announced the redundancies of 50,000 workers worldwide, had crisis talks with the Feds over the weekend, leading to the US Government’s biggest single bailout yet.

This bailout comes after a £16.4bn ($25bn) bailout earlier this year. As a result of the new deal, the Government will receive preferred shares with an 8 percent dividend in return.

Citigroup shares fell 60 percent last week to $3.77, with worries that the bank would become the next high profile scalp of the credit crunch.

As a result of the bailout, Citigroup’s dividend will wiped out. The bank cannot pay out more than 1 cent per share per quarter over the next three years without government consent.



News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm