Citigroup Bailout

About Citigroup Bailout

Citigroup received 45 billion in TARP capital injections plus a government guarantee on 306 billion in toxic assets. Citigroup had 2 trillion in assets and operations in over 100 countries. CEO Vikram Pandit had warned that the bank could fail without government support. The government took a 36 percent equity stake. Citigroup was split into Citicorp for commercial banking and Citi Holdings for non core assets. Pandit was replaced by Michael Corbat in 2012. Citigroup repaid TARP funds and the government sold its stake at a profit. The Citigroup bailout was controversial because Citigroup was considered too big to fail but also too big to rescue effectively. The company had grown too complex to manage, with operations spanning investment banking, consumer banking, insurance, and proprietary trading.