Citigroup says it has reached a deal that will give the US government up to a 40 per cent stake in the struggling bank.
The company also says it recorded a goodwill impairment charge of about $9.6 billion due to deterioration in the financial markets.
The increase in government ownership will not require additional taxpayer money. The government currently holds about an 8 per cent stake in the New York-based bank.
One of the hardest hit banks by the ongoing credit crisis, Citi has already received $45 billion in cash from the government and guarantees protecting it from the bulk of losses on $300 billion of risky investments.
