WASHINGTON – Federal regulators this weekend agreed to provide Citigroup with additional access to capital to protect it against losses from $306 billion worth of troubled assets, mostly loans and securities tied to the housing market.
Under the plan, Citigroup will absorb the first $29 billion worth of losses and the government will cover the others. The government will inject $20 billion in capital in the company and in return will receive additional preferred shares.
As part of the Troubled Asset Relief Program, the government already pumped $25 billion into Citigroup.
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