by Calculated Risk on 11/23/2008 03:57:00 PM

From CNBC: Citigroup Update: Government Looking To Buy Assets

The government is looking to buy substantial amount of assets from Citi like a good bank, bad bank structure. The Government will absorb much of the losses for citi if there are losses and Citi would issue preferred stock to the government. The government could buy more than $100 billion in the bad assets if the plans go through

The BBC is reporting that an announcement is expected before the markets open Monday.

UPDATE: Financial Times: Citigroup board in crisis talks (hat tip Dwight)

Citigroup's board was on Sunday locked in crisis talks ... the board is considering all options ...

Representatives of the New York Federal Reserve, as well as Treasury officials, are also monitoring developments.

... Citi is in no danger of bankruptcy. It recently received a $25bn investment from the Treasury and its credit is backed by the Fed. Its counterparties are not scrambling to put their business elsewhere, as was the case with Bear Stearns and Lehman. ... the Fed ... has taken a more hands-off approach ...