Citigroup pays dividend again as Fed lifts bar
Tuesday 22 March 2011
Citigroup, the global banking organisation which twice had to be bailed out by taxpayers in the United States, is to restart paying dividends to shareholders, two years after suspending the payout.
The bank is the latest US institution to announce it will resume the return of cash to shareholders, following a decision by the Federal Reserve on Friday that the American banking system is no longer in danger.
Citigroup is also rejigging its share structure, giving investors one new share for every 10 they hold. The number of shares ballooned as the company issued several rounds of new stock, including to the US Treasury, while it battled to stay solvent during the credit crisis.
The US Treasury sold the last of its stake in Citigroup at the end of last year, netting a total profit of $12bn (£7.4bn) on its emergency investments in the company in 2008. The dividend will be restarted at one cent per new share.
The Federal Reserve told large banks in early 2009 that they could no longer pay substantial dividends, for fear of damaging the safety and soundness of the banking system. It reversed that position last week.
- 1 Sabrina Corgatelli: US hunting tourist posts picture of herself with dead giraffe after Cecil the lion outrage
- 2 Tom Cruise: Reporters banned from asking actor about Scientology
- 3 A-level results 2015: UK exam board OCR admits it 'estimates' hundreds of pupils' grades after papers 'go missing'
- 4 Dutch King Willem-Alexander declares the end of the welfare state
- 5 Giant Minion terrorises drivers in Ireland as 40ft inflatable blocks traffic on Dublin road
Edward Heath 'raped 12 year-old boy at Mayfair flat'
Sabrina Corgatelli: US hunting tourist posts picture of herself with dead giraffe after Cecil the lion outrage
'Gene drive': Scientists sound alarm over supercharged GM organisms which could spread in the wild and cause environmental disasters
Labour leadership race: Jeremy Corbyn could be the next Prime Minister, says Ken Clarke
Tom Cruise: Reporters banned from asking actor about Scientology
Is Britain really full up? Are migrants taking our jobs? Leading academic answers the most common anti-immigration claims
Calais Migrant Crisis: Deputy Mayor of Calais labels Cameron's use of 'swarm' as 'racist' and 'ignorant'
Chris Leslie: Jeremy Corbyn's anti-austerity agenda will harm the poor, says Labour shadow Chancellor
Landlords renting properties to illegal immigrants to face up to five years in prison
While we fixate on Calais, the Home Office is quietly deporting dozens of migrants on 'ghost flights'
Calais crisis: The seven claims made about the migrants - and the reality
iJobs Money & Business
£35 - £50k DOE: Guru Careers: A Tax Manager / Accountant (ACA / CA / CTA) is n...
£35000 - £37000 per annum + benefits: Ashdown Group: Contracts Executive - Cit...
£20000 - £25000 per annum + OTE £45K: SThree: SThree Group have been well esta...
£21000 per annum: Recruitment Genius: This is an exciting opportunity to join ...