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| Version 1 | Version 2 |
|---|---|
| Citigroup to repay $20bn bail-out | Citigroup to repay $20bn bail-out |
| (30 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. | 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. | 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. | The government says it plans to sell these shares within the next year. |
| Payback time | |
| Nearly 700 banks were assisted by the Tarp, and most were quick to repay the bail-out money because it came with restrictions such as caps on executive pay and dividends. | |
| Last week Bank of America paid back its $45bn Tarp funding. | |
| The US Treasury said it was pleased Citigroup was moving forward with plans to repay the money. | |
| "While much work lies ahead to improve lending and spur job creation, today's announcement by Citigroup takes us another step in the right direction." | |
| Fat cat meeting | |
| Later on Monday, President Obama will meet top banking executives, including those from Citigroup. | |
| He will ask them to support his efforts to tighten regulation on the financial industry and to boost lending to small businesses. | |
| The meeting could well prove tense after the president referred to bankers as "fat cats" in a TV interview on Sunday. | |
| In its statement, though, Citigroup struck a conciliatory tone, saying it recognised "our obligation to support the economic recovery through lending and assistance to homeowners and other borrowers in need". |