U.S. injects $20 billion into Citigroup

In a last-minute deal, the U.S. government agreed to inject $20 billion in capital into Citigroup as well as backstop as much as $306 billion in toxic assets. The agreement requires Citi to absorb the first losses it sustains from residential mortgages, leveraged loans, collateralized debt obligations and other assets, up to $29 billion. For the injection, the government will receive preferred shares in the bank. If needed, the arrangement will be extended to other financial institutions that pose a risk to the stability of the financial system.

more at http://www.ft.com/cms/s/0/447938ee-b9f0-11dd-8c07-0000779fd18c.html?nclick_check=1