Tuesday, August 18, 2009

A recent UFO sighting ...

By Greg Farrell, Henny Sender and Nicole Bullock in New Yorkand Dave Shellock in London

Last updated: November 25 2008 01:42
Financial Times

Citi, which has dedicated about $8bn in reserves to cover assets in the portfolio, agreed to shoulder an additional $29bn in losses on its own. The government will take 90 per cent of any losses on the remaining $269bn in assets, with Citi absorbing 10 per cent.

Regulators considered more aggressive action, even discussing plans to buy common shares of Citi in the open market to “squeeze” short sellers, who bet on the company’s decline, participants in the talks say. The proposal – which recalls strategies employed by central bankers in the past – was rejected.

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