Fed May Increase Its Stake In Citi

Citigroup Inc. is in talks with federal officials for the U.S. government to expand its ownership of the bank, according to a report in the online edition of the Wall Street Journal, citing people familiar with the situation. The report

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Citigroup Inc. is in talks with federal officials for the U.S. government to expand its ownership of the bank, according to a report in the online edition of the Wall Street Journal, citing people familiar with the situation. The report said that while the talks could still fall apart, discussions center on the government ending up with as much as 40% of Citigroup’s common stock. Bank executives hope the stake will be closer to 25%, the Journal reported its sources have said. The proposal was made by Citigroup to its regulators, according to the report, which also noted the Obama administration hasn’t indicated if it supports the plan.

D.C.

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