Citi "Rescued". In case you haven't heard, news came in overnight that the US Gov't has agreed to bailout part 2 for Citigroup. The deal involves a $20 Billion cash infusion (on top of the $25 Billion last month), over $300 Billion in loan guarantees, and a potential additional $15 Billion kicked in by the Treasury and FDIC should Citi see further devaluation in the junk paper the gov't is guaranteeing (oh, like that won't happen). In return the taxpayers receive preferred stock with an 8% dividend, warrants if things get worse, and one less bank failure to roil the financial markets. So, who's next?
U.S. Approves Plan To Help Citigroup (NY Times)
Citigroup Faces Further Loses, Share Dilution (Bloomberg)