If the bailout passes, Citi may not need to raise capital and could
just sell $79.4 billion in assets -- of which $22.4 billion would be subprime, and
$21.5 billion would be residential loans -- to keep its head above water.
Trone said Citi may have to take a pretax charge of $21 billion if
assets were to be transferred to Troubled Assets Relief Program, or TARP,
at market prices.
Citigroup has been exploring options to raise more capital. One of those options could be to divest life
insurance unit Primerica to private equity firm JC Flowers & Co.
LLC and Alabama insurer Protective Life Corp. The bank is said to be currently working on a deal. - Maria Woehr
It looks like Citigroup Inc. could sell almost $80 billion in troubled assets under the government's proposed bailout plan, according to a Reuters interview with Fox-Pitt Kelton Cochran Caronia Waller analyst David Trone.
