Citibank in Trouble; US Government Comes for Rescue

[pioneer]

Shares in Citigroup have jumped by almost 60% as investors welcomed the US government's rescue plan for the bank.

The US Treasury is set to invest $20bn (£13.4bn) in return for preferred shares in the troubled banking giant.

The Treasury and the Federal Deposit Insurance Corp will also guarantee up to $306bn (£205bn) of risky loans and securities on Citigroup's books.

"Equity markets have responded positively to the Citigroup news," said Neil Mackinnon at ECU Group.

The new plan follows a $25bn injection of public funds in the bank last month.

Citigroup's market value fell to $20.5bn on Friday, compared with $270bn in 2006, as its shares plunged by more than 60% last week.

However they rallied by 58% on Monday.

The company has announced 52,000 job losses worldwide, on top of 23,000 job cuts previously announced. It employs around 12,000 people in the UK. - BBC

[TOPAC]

take it from me: the philippines is not in trouble...
we've learned our lessons in 1997.. we will not fail you guys this time..

close monitoring, supervision and regulation of banks and non-bank financial institutions coupled with conservative banking practices and good and sound corporate governance.. its more than you can ask for..

to survive this turmoil we will..
to overcome this fiasco we shall..
we will, we shall..