Citigroup Bailout Rescue

US Government unveils a bold plan on Sun to rescue Citigroup, injecting a USD$20B liquidity into the bank and providing guarantee on up to USD$306 billion of risky loans and securities backed by commercial and residential mortgages.

The announcement jointly by the Treasury Department, the Federal Reserve and the Federal Deposit Insurance Corp, is aimed at to boost confidence in the
finanical bank latest hit by plumming share prices in the last week.

The USD$20 billion cash injection will come from the $700 billion financial bailout package in which the government also received an ownership stake.

As a condition of the rescue, Citigroup is barred from paying quarterly dividends to shareholders of more than 1 cent a share for three years unless the company obtains consent from the three federal agencies.