Citi trying to convince US on repaying USD 20 bn bailout funds
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Last Updated: Monday, December 07, 2009, 19:13
  
London/New York: To free itself from government control, financial services major Citigroup is trying to convince US authorities to allow the bank to pay back USD 20 billion of the bailout money, says a media report.

British daily The Financial Times has reported that Citi is racing against the clock to convince US authorities that it be allowed to repay USD 20 billion of bailout funds, "with insiders and regulators arguing that unless the bank acts in the next 10 days it will have to wait for more than a month".

"The short window for a decision on the repayment of funds from the troubled asset relief programme raises the stakes for Citi in its quest to free itself from the shackles of the government," the daily noted.

The US government owns 34 per cent stake in Citi.

Attributing to insiders, the newspaper said that unless Citi could launch a share offering by December 14 or 15, it would probably have to wait until at least late January.

"It was not technically impossible to raise capital between the end of a quarter and the announcement of results but added that disclosure rules could make it difficult, especially for a company as complex and geographically diverse as Citi," the report quoted lawyers as saying.

The daily pointed out that Citi's executives have been lobbying to be allowed to repay bailout funds, arguing that the bank has cash reserves of more than USD 240 billion and its financial performance is improving.

PTI


First Published: Monday, December 07, 2009, 19:13


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