It looks like Citigroup is the newest financial institution that is in need of saving by the government. News reports are that Citigroup is nearing an agreement with U.S. government to create a structure that would house some of the financial giant's risky assets.
Didn't Paulson say the financial crisis was behind us, that we were no longer having to worry about what the next bank would be that would go under?
Guess the crisis isn't over.
Under the terms being discussed, Citigroup would agree to absorb losses on assets covered by the agreement up to a certain threshold. The federal government would cover losses beyond that level, people familiar with the matter said. One person said the new entity is expected to hold about $50 billion of assets.