A website with no National Office Bearers
23 May 2017 19:02 (South Africa)

Citigroup wriggles on end of bailout hook, struggling to free itself

Citigroup and Wells Fargo are among the last US banks to free themselves from the strictures of their government bailouts. Banking regulators have dangled carrots and beat them with sticks on issues such as limiting executive salaries and bonuses, after President Barack Obama’s administration was criticised for using taxpayer money to rescue Wall Street. Most of the banks that took billions of dollars in bailouts have repaid the funds (at what interest rate, we ask), but “Big Daddy” Citigroup will not so easily be let off the hook. It’s annoyed at being owned by taxpayers, but only has itself to blame. Obama’s money guys say that if the errant bank wants to return to a freer state, it first has to raise cash from private investors to repay $20 billion in government handouts. After that, the US Treasury will try to sell its $25 billion worth of shares in Citigroup over the next year. Then, maybe, the bank will be off the naughty mat at last, and able to run around again. Read more: The Washington Post

Get overnight news and latest Daily Maverick articles






Do Not Miss