The US government has agreed to bail out Citi-bank. 20 billion dollars will be injected to Citi-bank. At the same time, the government will stand behind some $306bn in
Citi's domestic assets. According to the deal, Citi need to be responsible for the first $37bn in losses recognised on these assets. As for the remaining 269 billion, the government will bear 90 percent of any losses.
Citi-group's shares surged about 60 percent yesterday. The global markets also were cheered up. The London FTSE 100 climed 9 percent. The DAX Index in Germany climed up 10 percent and the CAC 40 Index, 9 percent increase.
However, there seems to be a problem: US government gave the green light to Citi-group. What about the other banks? Can they get the same treatment from the government?
Copyright© 1998-2009TravelChinaGuide.com, All rights reserved.