Monday, December 7, 2009

Treasury Linking Citigroup Sale to TARP Payback

The Treasury department is delaying its sale of Citigroup stock until there is an agreement between regulators and Citi on how and when the TARP money will be repaid. The fear is that selling the stock now could weaken investor demand for an already shaky stock should Citi be required to raise capital as a condition of exiting the bailout program. Ouch!

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