January 16, 2009
hp-1358

U.S. Government Finalizes Terms of Citi Guarantee Announced in November

Washington, DC – The Treasury Department, Federal Reserve and the Federal Deposit Insurance Corporation have finalized the terms of the guarantee agreement with Citigroup that was previously announced on November 23, 2008. The agreement provides protection against the possibility of unusually large losses on an asset pool of approximately $301 billion of loans and securities backed by residential and commercial real estate and other such assets, which will remain on Citigroup's balance sheet.

The capital investment finalized last month and asset protections finalized today provide support as Citigroup executes its ongoing restructuring plans. This agreement was previously announced on November 23, 2008. No new money has been committed today and no government funds have been transferred. The U.S. government will continue efforts to strengthen our banking institutions and support financial markets.