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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers
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To: loantech who wrote (63799)2/26/2009 11:33:45 PM
From: Rocket Red  Read Replies (1) of 78408
 
Feb. 26 (Bloomberg) -- The Obama administration may require Citigroup Inc. to raise private capital and make changes to its board of directors as part of an effort to strengthen the bank, according to people familiar with the matter.

The plan, which may be announced as soon as tomorrow, will involve the Treasury Department converting preferred shares into common stock. The government doesn’t immediately intend to provide additional money after channeling $45 billion to the New York- based bank last year, said the people.

Citigroup Chief Executive Officer Vikram Pandit, 52, is trying to bolster confidence after his bank’s stock price sank below $2 last week for the first time in 18 years. The government is supporting the firm because of concerns its failure might roil already weak global markets.

Citigroup spokesman Jon Diat didn’t immediately return calls seeking comment.

Federal Reserve Chairman Ben S. Bernanke said yesterday that he wanted to avoid nationalizing Citigroup and other large banks in a way that would wipe out shareholders and leave the U.S. in full control. Bernanke did say the government might end up owning a “substantial minority” of the bank.

To contact the reporters on this story: Bradley Keoun in New York at bkeoun@bloomberg.net; Rebecca Christie in Washington at Rchristie4@bloomberg.net;

Last Updated: February 26, 2009 23:04 EST
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