Citigroup Frets Over TARP Taint

Citigroup (C Quote) Chairman Richard Parsons said Monday that while the government's cash infusion is keeping the troubled bank alive, it will also "disadvantage" the company over the long term.

Citi is undergoing a conversion of $58 billion in preferred stock. A portion of the stock is held by private investors, but much of it was issued to the federal government in exchange for funds from the Troubled Asset Relief Program. The move will bring Tier 1 and tangible capital levels to about twice the mandated amount, Parsons said.

However, it is also hindering a core element that will allow Citi to prosper over the long term -- employees. ...