Now Reading:

Washington's biggest bank bail-out yet


Washington's biggest bank bail-out yet


The US government has made its biggest move yet to rescue an American bank. For Citigroup, it means a 15.5-billion euros capital injection – on top of 19.5-billion it has already been given – and an agreement the government will shoulder most of the potential losses lurking in 240-billion euros worth of high-risk assets. Citigroup shares immediately surged 55 per cent – but they had dropped 60 per cent in value last week.

It was America’s second biggest bank – some analysts reckon it simply could not be allowed to crash – with more 1.5-trillion euros in assets and dealings in 100 countries it is just too big. Failure would mean a catastrophic ripple effect around the globe. The bank now has to try to tweak its high-risk mortgages, as the government tries to keep re-possessions down. Senior Citigroup bosses will keep their jobs, something one shareholder described as an inept management being rewarded by the US government.

Every story can be told in many ways: see the perspectives from Euronews journalists in our other language teams.

Next Article