U.S. Government Agrees to Rescue Plan for Citigroup
The U.S. Government reportedly agrees to a rescue plan for Citigroup according to the Wall Street Journal. The plan would remove about $300 billion of bad assets off of the companies books. This may help stabilize the company which has been under pressure losing 60 percent of it's value on the markets. The once mighty Citigroup had market cap of $250 billion only 2 years ago, that market cap has dwindled to about $20 billion as of Friday. Citigroup has been one of the more vulnurable banks because of the sub-prime mortgage mess. The governemnt rescue should give some sense of relief to the stock market on Monday however it may not help out Citi shareholders who may lose all their equity in the stock. That remains to be seen and we shall see the effect tommorrow on the markets.
Tags: Citigroup Bail Out Rescue
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