One more bank is near to bankruptcy after the global changes and financial crisis. City is one of reputed banks all over the world. Federal government plans to give aid worth of $20 billion to Citibank in return for the preferred shares of the bank.
Up to $306 billion were guaranteed by the treasury and federal deposit insurance corporation for risky loans and securities on Citigroup’s books. After investment or guarantee provided by the banks there was positive response in the equity markets. $25 billion of new plan was in addition to public funds in the bank in October.
On Friday, November 21, 2008 the value of Citibank fell to $ 20.5 billion that was $279 billion in 2007 and shares were down by more than 60% in last week. With this, it is proved that not even the biggest companies are insulated from the recession crisis. God know the depth of this.
