TEXT-U.S. Treasury, Fed, FDIC statement on Citigroup

 WASHINGTON, Nov 23 (Reuters) - The following is the text of
a statement on Citigroup Inc C.N released jointly by the U.S.
Treasury Department, Federal Reserve and Federal Deposit
Insurance Corp on Sunday:

 The U.S. government is committed to supporting financial
market stability, which is a prerequisite to restoring vigorous
economic growth. In support of this commitment, the U.S.
government on Sunday entered into an agreement with Citigroup
to provide a package of guarantees, liquidity access and
capital.

 As part of the agreement, Treasury and the Federal Deposit
Insurance Corporation will provide protection against the
possibility of unusually large losses on an asset pool of
approximately $306 billion of loans and securities backed by
residential and commercial real estate and other such assets,
which will remain on Citigroup's balance sheet. As a fee for
this arrangement, Citigroup will issue preferred shares to the
Treasury and FDIC. In addition and if necessary, the Federal
Reserve stands ready to backstop residual risk in the asset
pool through a non-recourse loan.

 In addition, Treasury will invest $20 billion in Citigroup
from the Troubled Asset Relief Program in exchange for
preferred stock with an 8% dividend to the Treasury. Citigroup
will comply with enhanced executive compensation restrictions
and implement the FDIC's mortgage modification program.

 With these transactions, the U.S. government is taking the
actions necessary to strengthen the financial system and
protect U.S. taxpayers and the U.S. economy.

 We will continue to use all of our resources to preserve
the strength of our banking institutions and promote the
process of repair and recovery and to manage risks. The
following principles guide our efforts:

 -- We will work to support a healthy resumption of credit
flows to households and businesses.

 --  We will exercise prudent stewardship of taxpayer
resources.

 -- We will carefully circumscribe the involvement of
government in the financial sector.

 -- We will bolster the efforts of financial institutions to
attract private capital.