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Citigroup to repay $20bn bail-out | |
(21 minutes later) | |
Citigroup says it will repay $20bn of US bail-out funding. The move marks its exit from the US government's Troubled Asset Relief Program (TARP). | |
Citigroup is the last of the big US banks to leave the support mechanism. It will issue $17bn in new shares to help finance the move. | |
Theoretically, it means it can now avoid pay restrictions on its top 100 employees. | Theoretically, it means it can now avoid pay restrictions on its top 100 employees. |
The bank said it owed American taxpayers "a debt of gratitude". | The bank said it owed American taxpayers "a debt of gratitude". |
Citigroup received $45bn in government support but only has to pay back $20bn as the US government converted the rest into a stake in the company. It owns 34% of the bank. | |
The government says it plans to sell these shares within the next year. | |
Many banks have moved quickly to repay the bailout money because it came with restrictions like caps on executive pay and dividends. |