Updated with stock price moves
NEW YORK (
was among the losers of the financial sector Monday after the bank said it has reached a deal to repay $20 billion in government aid.
said Monday it has reached an agreement with the U.S. government and its regulators to pay back $20 billion it received in bailout aid. Citigroup said it will immediately issue $20.5 billion of capital and debt, made up of $17 billion of common stock, and it also will issue $3.5 billion of tangible equity unit.
The Treasury Department has agreed to sell up to $5 billion of Citigroup stock it holds in a secondary offering, the bank said. Treasury also said it plans to sell the remainder of its shares in an orderly fashion over the next six to 12 months.
shares were losing 27 cents, or 6.8%, to $3.68.
On the other hand,
rose after Standard & Poor's said it will add the company, along with four others, to the
index. The changes will become effective after the close of trading on Dec. 18. Visa was lately rising by 3.8% to $84.46.
, which will be bounced from the S&P 500 in favor of
Mead Johnson Nutrition
, was tumbling 8.3% to $3.37.
In other bank news,
shares slipped after
The Wall Street Journal
reported that the bank has picked a front-runner to take the CEO spot, but compensation questions are holding up an agreement.
Bank of New York Mellon
CEO Robert Kelly told directors of his bank he was in discussions to replace the departing Ken Lewis for the top job at Bank of America. Negotiations between Bank of America and Kelly are fluid, with a person close to Kelly saying it might not be possible for the parties to reach a deal, according to the report.
Bank of America was lately down 5 cents, or 0.3%, to $15.58. Among other bank names,
added 1.9% to $41.72,
tacked on 0.2% to $25.46,
slid 0.2% to $165.70, and
gained 1.1% to $30.10.
rallied higher after the bank said, as part of its management agenda, it sees a pre-tax profit potential of approximately 10 billion euros from its operating businesses for 2011, before adjustments for corporate investments, consolidations and adjustments.
Deutsche Bank shares trading in New York were climbing 3.6% to $72.52.
-- Written by Robert Holmes in Boston
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