Citigroup bailout: Barack Obama Official Wants Tighter Controls

President-elect Barack Obama top transition official, John Podesta calls for the Government to intervene at Citigroup (NYSE:C) in the same way it did with troubled car manufacturer General Motors (NYSE:GM).

Citigroup received a £13 billion bailout this week from the Federal Government after the troubled bank fell deeper into trouble as its share prices tumbled 60 percent in one week.

General Motor was forced by the government to submit a strategy document before they agreed to the $12 billion bailout package. However Citigroup got off lightly when the US Government announced they would inject $20 billion into the troubled bank and insure it against losses of £200 billion without any strategy assurances from Citigroup or management re-shuffle.

In the UK the Government appointed Merrill Lynch banker John Crompton to control the merger of Lloyds TSB and HBOS and the planned £37 billion investment into the Royal Bank of Scotland (RBS).

Source: thisismoney

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