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| US rescues ailing Citigroup bank | |
| (20 minutes later) | |
| The US government has announced a rescue plan for the Citigroup banking giant after its shares plunged by more than 60% last week. | The US government has announced a rescue plan for the Citigroup banking giant after its shares plunged by more than 60% last week. |
| The US treasury department is to invest $20bn (£13.4bn) in return for preferred shares in Citigroup. | The US treasury department is to invest $20bn (£13.4bn) in return for preferred shares in Citigroup. |
| The treasury and the Federal Deposit Insurance Corp will also guarantee up to $306bn (£205bn) of risky loans and securities on Citigroup's books. | The treasury and the Federal Deposit Insurance Corp will also guarantee up to $306bn (£205bn) of risky loans and securities on Citigroup's books. |
| The plan follows a $25bn injection of public funds in the bank last month. | The plan follows a $25bn injection of public funds in the bank last month. |
| 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. |
| The action plan was announced after emergency talks over the weekend between the bank and the treasury department, the Federal Reserve and the Federal Deposit Insurance Corp. | The action plan was announced after emergency talks over the weekend between the bank and the treasury department, the Federal Reserve and the Federal Deposit Insurance Corp. |
| Citigroup is the second-largest US bank and has operations in more than 100 countries. | |
| Many analysts had calculated that the huge financial institution was too big to allow to fail. | |
| "With these transactions, the US government is taking the actions necessary to strengthen the financial system and protect US taxpayers and the US economy," the three agencies said in a statement. | "With these transactions, the US government is taking the actions necessary to strengthen the financial system and protect US taxpayers and the US economy," the three agencies said in a statement. |
| The cash injection will come from the $700bn financial bail-out fund created last month. | The cash injection will come from the $700bn financial bail-out fund created last month. |