Keeping Citigroup Up And Running

Economy Financial The Fed has revealed how they plan to keep the financial giant for going under.
by The Associated Press
Published: Mon, November 24, 2008 - 10:09 am CST Last Updated: Mon, November 24, 2008 - 10:14 am CST
WASHINGTON (AP) - The government is pumping another $20 billion
into Citigroup with the hope it'll keep the financial giant from
collapsing.
The rescue of Citigroup includes help for distressed homeowners,
who'll see their mortgages modified to avoid foreclosure.
The plan will mirror one that has borrowers paying interest
rates of about three percent for five years. Rates are reduced so
they aren't paying more than 38 percent of their pretax income on
housing.
Analysts around the world suggest if Citigroup were to fail,
financial markets would descend into chaos and there'd be no more
lending or borrowing "for a while."
Regulators are hoping this latest step will bolster badly shaken
confidence not just in Citigroup, but throughout the nation's
financial system.
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