Reeling Citigroup is raising another $12 billion in FDIC-backed debt. It’s the largest such offering in this program yet.
Bloomberg: Dwindling capital and a sinking stock price has already forced Pandit to take $45 billion in cash from the U.S. government and abandon the bank’s decade-old strategy of selling multiple financial services under one roof. Citigroup is now returning to the FDIC program for the first time since Dec. 4 as $42.2 billion of debt matures this year, Bloomberg data show.
“A lot of it is to refinance existing debt maturities,” said Joe Scott, a banking industry analyst at Fitch Ratings in New York. “It helps them maintain adequate liquidity, and it’s part of maintaining the viability of a very systemically important institution.”