You’re On the Hook for $306 B. of Citi’s Real Estate-Backed Securities

As part of Citi’s $40 billion deal with the U.S. Treasury, the FDIC and the Federal Reserve, the government will guarantee the financial giant’s loans and commitments backed by residential and commercail real estate assets.

From a Citi breakdown of the government deal: “Citi will issue an incremental $7 billion in preferred stock to the U.S. Treasury and the FDIC as payment for a government guarantee on $306 billion of securities, loans, and commitments backed by residential and commercial real estate and other assets…”

Congrats!

You’re On the Hook for $306 B. of Citi’s Real Estate-Backed Securities