Hapless Citigroup (C), now the recipient of not one but two taxpayer bailouts, is finally putting your tax dollars to work (on something other than executive bonuses). Specifically, it is rescuing its Korean subsidiary.
Reuters – Citigroup has injected $800 million of new capital into its South Korean banking arm to lift its capital ratio, Citibank Korea said on Monday.
60 per cent of the injection will be used to issue new shares while the remaining 40 per cent will be for subordinated debt, both to be acquired by the New York-based banking giant, Citi said.
Citi’s management, shareholders, and debtholders have not yet said “Thank you, America.” So allow us to say it for them. Without you, Citibank Korea and anyone else connected in any way to this global debt gambling operation would be looking at a big, fat bagel.