A year after accepting two taxpayer bailouts, Citigroup is racing to raise billions of dollars in the stock market to repay the aid, a crucial step in freeing itself from Washington’s grip.
Even if Citigroup were to pay back all or part of its bailout funds — a move some analysts warn might be premature — the giant financial services company would still be beholden to the government because of other federal support it is receiving.
Citigroup is redoubling its efforts to reimburse taxpayers now that Bank of America and many other of its big rivals have repaid the bailout money they received last year at the height of the financial crisis.. Doing so would help Citigroup shed the stigma associated with being the last Wall Street giant still tied to Washington.
If Citigroup can persuade the government that it is strong enough to stand on its own by repaying the money, and persuade investors to buy new shares, the accomplishment would be another milestone in the recovery of the nation’s financial industry. Few analysts had expected Citigroup to repay the government so soon.
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