Citigroup Close to Secret Deal with FDIC

By Jul 15, 2009, 8:59 PM Author's Blog  

Citigroup Close to Secret Deal with FDICCitigroup Inc (C) is close to a secret agreement with one of its main regulators that will increase scrutiny for the U.S. bank, the Financial Times reported in its Thursday edition.

From the Financial Times:

People close to the situation said that the deal had been discussed in recent weeks amid increased pressure on Citi from the [FDIC], the regulator, and could be finalised soon.

The proposed agreement requires, among other things, that Citi strengthens its board and governance, improves asset quality, better manages expenses and provides more information to regulators on its capital and liquidity.

Bailed-out Citi, which is about to cede a 34% stake to the U.S. government, is reporting this Friday. The bank is expected to post a second-quarter loss of more than $23 billion revenue/wise and EPS of $0.25.

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