Global bank Citigroup has been thrown a $20 billion (£10 billion) lifeline by the US Treasury.
After negotiations this weekend, the US government says it will guarantee more than $300 billion (£200 billion) of the lender’s weakest assets in return for a $20 billion stake.
The US Treasury Department, the Federal Reserve and the Federal Deposit Insurance Corporation announced that the US government is “taking the actions necessary to strengthen the financial system and protect US taxpayers and the US economy”.
Hit by the global recession, Citigroup has been forced to announce 52,000 job losses – it has been reported 2,000 of these will be from positions in London.
The bank has several branches in Canary Wharf – its most obvious presence is the Citigroup Centre at 25 Canada Square.
Designed by Cesar Pelli Associates and completed in 2002, the building features 170,000 square feet of office space in a prime central London position.