Citi Puts Your TARP Dollars To Work...In Korea (C)

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.

See Also: Citi’s Balance Sheet: Friday The 13th, Part XVII

 

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.