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The U.S. Treasury Department announced late on Sunday it was investing $20 billion in struggling Citigroup Inc as one of a series of actions to help the beleaguered bank and it will take preferred shares in it.

In a late-night announcement after a weekend of talks about what to do to help Citigroup, Treasury also said it and the Federal Deposit Insurance Corp. will provide protection against losses in a pool of about $306-billion worth of loans and securities on Citigroup`s balance sheet.

Treasury said the U.S. Federal Reserve stood ready to backstop any additional risk in the asset pool through an offer of a non-recourse loan.

Source:
http://in.reuters.com/article/businessNews/idINIndia-36658420081124

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