US Fed Bails out Citigroup for now

Just yesterday I blogged on Citigroup facing a survival issue…and this morning news came that the US Government stepped in to bail it out for now….It will guarantee US $ 306 Billion in losses on high risk assets and will inject US $ 20 billion as fresh Equity from the Troubled Assets Rescue Program of US $ 700 Billion

Fed has taken the View that Citigroup is too big to let it collapse like Lehman

Expect the Share Price of Citicorp to move up from Friday’s closing of US $ 3.77 as this move by the Fed will certainly boost Investor confidence…but don’t conclude that troubles are over for Citicorp….Far from it

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