US could take 25-40% stake in Citi: WSJ

ABS-CBN News

Posted at Feb 23 2009 12:29 PM | Updated as of Feb 23 2009 08:29 PM

NEW YORK - The US government is in talks that could lead to it taking take a 25-40 percent stake in Citigroup, The Wall Street Journal reported Sunday.

"While the discussions could fall apart, the government could wind up holding as much as 40 percent of Citigroup's common stock. Bank executives hope the stake will be closer to 25 percent," the paper reported citing unnamed people familiar with the situation.

"The proposal was made by Citigroup to its regulators. The (Barack) Obama administration hasn't indicated if it supports the plan," the report said citing people with knowledge of the talks.