Tuesday's Headlines: Citigroup

Tuesday's early headlines include an update on GM's bankruptcy, Citigroup halting severance payments for five former top executives, and EMC outbidding NetApp for Data Domain.
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Tuesday's Early Headlines

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GM Wants Accelerated Bankruptcy, Sells Hummer Brand.

-

General Motors

(GM) - Get Report

told a bankruptcy court it wants approval for the proposed sale of its strongest assets at a June 30 hearing, according to

CNBC

. That would equal the same rate

Chrysler's

bankruptcy proceedings. On Tuesday, GM said it has settled on a buyer for its Hummer brand, but didn't disclose the purchaser or the terms of the deal.

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May Auto Sales in Focus.

- Auto sales data for May is scheduled to be released throughout the day Tuesday, and it will likely be one more reminder of GM's recent woes. Edmunds.com is forecasting that May new-vehicle sales will show an increase of 8.9% versus April sales figures, although sales are still depressed when compared with last year.

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Citigroup Halts Severance Payments.

-

Citigroup

(C) - Get Report

has told five former top executives the bank won't pay them tens of millions of dollars in promised severance payouts, according to

The Wall Street Journal

. According to the report, bank officials concluded they wanted to avoid even the possibility of a public backlash over the money.

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Fed Outlines TARP Repayment Criteria.

- The

Federal Reserve

late Monday outlined the criteria it will use to evaluate applications to redeem U.S. Treasury capital from the 19 major U.S. banks that participated in the stress tests. Among the criteria, the Fed said banks seeking to redeem TARP funds must demonstrate an ability to access the long-term debt markets without reliance on the Federal Deposit Insurance Corp.'s Temporary Liquidity Guarantee Program, and must successfully demonstrate access to public equity markets. Redemption approvals for an initial set of these large bank holding companies are expected to be announced during the week of June 8.

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AmEx Joins JPMorgan in TARP Repayments.

- Late Monday,

American Express

(AXP) - Get Report

announced plans to offer $500 million in common stock, with the proceeds to be used in part to pay back government bailout funds. The move is to satisfy the above mentioned Fed criteria that it can access public equity markets.

JPMorgan Chase

(JPM) - Get Report

announced its own $5 billion common stock offering earlier in Monday's session.

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Abu Dhabi Investor Sells Barclays Shares.

- International Petroleum Investment Co., controlled by the royal family of Abu Dhabi, said it planned to sell 1.3 billion shares in

Barclays

(BCS) - Get Report

, held by its subsidiary, PCP Gulf Invest 1 Ltd. The Abu Dhabi company invested 2 billion pounds in Barclays, but the shares currently are worth about 4 billion pounds.

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EMC Outbids NetApp for Data Domain.

- Hopkinton, Mass.-based

EMC

(EMC)

is offering $1.8 billion, or $30 a share, for

Data Domain

(DDUP)

, one-upping a rival bid for the backup system provider from

NetApp

(NTAP) - Get Report

.

Earnings and Economic News

There is very little else in terms of economic releases due Tuesday. The April read on pending home sales, due at 10 a.m. EDT, is expected to show a rise of 0.5% after 3.2% increase in March.

In other economic news, Treasury Secretary Timothy Geithner's visit to China continues. Already, Geithner has sought to assure China that the U.S. government is committed to attacking soaring budget deficits.

The earnings calendar is light Tuesday, with

Hovnanian

(HOV) - Get Report

,

Verifone

(PAY)

,

Bob Evans

(BOBE)

and

Applied Signal

(APSG)

among a small number of companies set to report quarterly results after Tuesday's close.