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Citigroup seeks 'emergency cash' | Citigroup seeks 'emergency cash' |
(about 12 hours later) | |
Executives of Citigroup, one of the biggest banks in the US, are in emergency talks with the US Treasury to gain much-needed funding, reports say. | Executives of Citigroup, one of the biggest banks in the US, are in emergency talks with the US Treasury to gain much-needed funding, reports say. |
The bank is also said to have contacted certain shareholders to assess their interest in increasing their stakes as as it faces an uncertain future. | The bank is also said to have contacted certain shareholders to assess their interest in increasing their stakes as as it faces an uncertain future. |
Citigroup stock ended 20% lower on Friday as its board members met. | Citigroup stock ended 20% lower on Friday as its board members met. |
Last week the company announced 52,000 job losses worldwide on top of 23,000 job cuts previously announced. | Last week the company announced 52,000 job losses worldwide on top of 23,000 job cuts previously announced. |
No one from Citigroup was immediately available for comment. | No one from Citigroup was immediately available for comment. |
There are fears that without further funding the bank might not be able to survive. Any money would be in addition to the $25bn injection it received in October from the US Treasury. | There are fears that without further funding the bank might not be able to survive. Any money would be in addition to the $25bn injection it received in October from the US Treasury. |
Options being discussed included a government cash injection as well as Citigroup selling some of its business, reported The Sunday Times. | Options being discussed included a government cash injection as well as Citigroup selling some of its business, reported The Sunday Times. |
Chief executive Vikram Pandit told employees on Friday that the firm did not want to change its business model, Reuters reported, citing two employees. | Chief executive Vikram Pandit told employees on Friday that the firm did not want to change its business model, Reuters reported, citing two employees. |
He also reiterated that the firm had a robust capital position. | He also reiterated that the firm had a robust capital position. |
But Sean Egan, analyst at ratings agency Egan-Jones Ratings, said, "Citigroup needs a deep-pocketed investor that is ready, willing, and able to step up in the next few days." | But Sean Egan, analyst at ratings agency Egan-Jones Ratings, said, "Citigroup needs a deep-pocketed investor that is ready, willing, and able to step up in the next few days." |
"The only one who comes to mind is the government," he said, adding that $50bn might be needed. | |
In a bid to reassure investors, Citigroup is running advertisements in US and international newspapers on Sunday underlining its stability. | In a bid to reassure investors, Citigroup is running advertisements in US and international newspapers on Sunday underlining its stability. |
It is widely expected that Citigroup will issue a statement on Monday before the US markets open. | It is widely expected that Citigroup will issue a statement on Monday before the US markets open. |
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