Banking Crisis

Citi Pushes For TARP Repayment - Report

Nick Parmee 8 December 2009

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Citigroup chief executive officer Vikram Pandit is urging the US Treasury and regulators to agree within ten days on a plan to pay back $20 billion remaining from the federal bailout, according to a Bloomberg report citing unnamed sources.

Mr Pandit stepped up his efforts when Bank of America announced last week that it had won approval to pay back $45 billion of taxpayer funds and exit the Troubled Asset Relief Programme; Citigroup does not want to be the only major US bank still on “exceptional assistance.”

Citigroup - which operates a large private banking arm - is trying, like other peers, to repay TARP cash and free itself from the controls over its activities that are associated with receipt of taxpayer's money.

Treasury spokesman Andrew Williams is quoted as saying: “We do not comment on individual institutions but it’s fair to say that since Bank of America announced its intention to repay the government, others are pursuing discussions to understand what needs to be done to move ahead with repayment. We continue to believe that banks and our financial system are better off with private capital instead of government capital.”

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