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Citigroup and the US Treasury have reached a deal that sees the government substantially increase its stake in the ailing bank from 8% to 40%.
The deal does not require extra taxpayer investment, but is dependent on Citi raising extra private capital.
Citi shares opened down more than 30% as investors worried about their stake in the bank being diluted by the move.
As one of the banks hardest hit by the continuing credit crisis, Citi has already gained $45bn in Treasury cash.
FULL STORY
Is AIG next, or will it be broken up?
The deal does not require extra taxpayer investment, but is dependent on Citi raising extra private capital.
Citi shares opened down more than 30% as investors worried about their stake in the bank being diluted by the move.
As one of the banks hardest hit by the continuing credit crisis, Citi has already gained $45bn in Treasury cash.
FULL STORY
Is AIG next, or will it be broken up?