Key Developments For Citigroup Inc.
Citigroup Inc. (C) (NYSE Arca)
Fed Asks U.S. Banks Including Citigroup Inc. To Submit TARP Repayment Plans-Reuters
Reuters reported that the U.S. Federal Reserve this month asked banks that were part of its 'stress tests' to submit plans to repay government money, if they have not already repaid it. Many U.S. banks are eager to repay money borrowed under the government's $700 billion Troubled Asset Relief Program. Participation in the program comes with limitations on pay, dividend payouts and share repurchases. Nine banks may soon be allowed to repay money borrowed under TARP, if they have been able to raise common equity recently and if they show they would continue to exceed capital buffers after redemptions. The stress tested banks that remain in TARP include Bank of America Corporation, Citigroup Inc., Fifth Third Bancorp, GMAC, KeyCorp, PNC Financial Services, Regions Financial Corporation, SunTrust Banks, Inc. and Wells Fargo & Co.
Citigroup Inc. Sells Diners Club North America Business
Citigroup Inc. announced that it has signed a definitive agreement to sell its Diners Club North America card business to BMO Financial Group (BMO). The deal gives BMO exclusive rights to issue Diners cards in the U.S. and Canada. Terms of the deal were not disclosed. The sale is anticipated to reduce Citi's assets in Citi Holdings by approximately $1 billion and is not expected to have a material impact on Citi`s net income or capital ratios. The transaction is expected to close by March 31, 2010.
Citigroup Inc. Provides $15 Million In Financing To Renovate Bedford Stuyvesant's Restoration Plaza
Citigroup Inc. announced that it is providing $15 million in financing for the renovation of Bedford Stuyvesant Restoration Corporation's Restoration Plaza. The financing will consist of an $11.4 million short term bridge loan and a $4 million New Markets Tax Credit Investment. Citi also announced it has donated an additional $200,000 to the Centers for Financial Empowerment in partnership with the Bedford Stuyvesant Restoration Corporation (BSRC).
Citigroup Inc. Sells Barneys New York's Secured Term Loan To Yucaipa-Reuters
Reuters reported that Ron Burkle and his investment arm, Yucaipa, have purchased a large amount of Barneys New York's debt. Citigroup Inc. sold a big part of Barneys New York's secured term loan to Burkle at about 60 cents on the dollar. Yucaipa also bought a big part of Barneys' subordinated debt.
Fitch Ratings Upgrades Individual Rating for Citigroup Inc. from "E" to "D/E"-Reuters
Reuters reported that Fitch Ratings has upgraded the individual rating for Citigroup Inc. to "D/E" from "E" and placed this rating on positive watch. Fitch Rating also confirmed long-term Issuer Default Rating (IDR) on level "A+" and short-term IDR on "F1".
