Citi To Repay $20B In TARP Funds, Escape Leash

Law360, New York (December 14, 2009, 6:02 PM EST) -- Citigroup Inc. has debuted a plan to return $20 billion in bailout funds received from the U.S. Department of the Treasury, launching a $17 billion common stock offering and a $3.5 billion offering of tangible equity units.

The plan to repay the government-held Troubled Asset Relief Program trust preferred securities would terminate the banking giant’s loss-sharing agreement with the government, Citi announced Monday.

In connection with Citi's immediate $20.5 billion capital and debt offering, the Treasury Department will sell up to $5 billion of the common...
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