Citigroup is close to striking a deal with the U.S. government to raise over $10 billion in new capital by issuing common stock, The Wall Street Journal reports. The money will help the bank repay some of the $20 billion injected by the Treasury last year.
The new money will also raise Citi’s capital, allowing the bank to exit a program, in which the government was protecting it from most losses on $301 billion of assets. Citi is hoping the Treasury will plan to sell a part of the 34 percent stake held by the government.
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