US unveils Citigroup rescue plan

The US government unveiled a bold plan to rescue troubled Citigroup, including taking a $20bn (€15.7bn) stake in the firm as well as guaranteeing hundreds of billions of dollars in risky assets.

The action, announced jointly by the Treasury Department, the Federal Reserve and the Federal Deposit Insurance Corp, is aimed at shoring up a huge financial institution whose collapse would wreak havoc on the already crippled financial system and the US economy.