Citigroup, one of the banks that took part in TARP, is rushing to repay more than $20 billion of its bailout.
Citigroup Inc., one of the banks that took part in TARP, is rushing to repay more than $20 billion of its government loan.
Citigroup took the most money from the government earlier this year as part of the bank bailout, and now it’s found a way to repay $20.5 billion to the government, reports Bloomberg News.
Insiders say the company is selling equity and debt to come up with the money so that it won’t be subject to the government’s salary caps, which could come for banks that participated in the Troubled Asset Relief Program, or TARP.
Citigroup’s CEO, Vikram Pandit, became "focused on repaying TARP as soon as possible" after another bank, Bank of America, announced plans to repay $45 billion of its debt, according to knowledgable sources.
Citigroup borrowed $45 million from the federal government. Bank of America, JP Morgan Chase & Co., Goldman Sachs Group Inc. and Morgan Stanley also borrowed money, but repaid their debt in June. Other companies, including Wells Fargo & Co., American Investment Group Inc. (AIG) and General Motors Corp., all have outstanding debt to the government.
– Whitney Teal
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