Citi Bailout 3.0

Can a month pass without a Citigroup bailout? According to The Wall Street Journal, the Treasury Department has agreed to take on a 36 percent stake in Citigroup. Embattled CEO Vikram Pandit will remain at the helm, but Citi will have to shake up its board so it has a majority of independent directors. It is Citigroup's third bailout, the first two having totaled $45 billion. Under the agreement, "the government will convert its stake only to the extent that Citigroup can persuade private investors such as sovereign wealth funds do so as well, the people said. The Treasury will match private investors' conversions dollar-for-dollar up to $25 billion."