Bailout package sanctioned for Citigroup

Last weekend was really dramatic for Citigroup, from announcement of 52,000 job cuts, with high probability of filing for bankruptcy, with chances of acquisition or mergers with other banks on the wall street, with Citigroup shares trading at lowest levels in decades. But somehow, Citigroup felt a sigh of relief, when US fed sanctioned a 20bn $ bailout package, and support to underwrite Citi's multibillion dollar toxic assets. The news of bailout package resulted in surge of Citi's stock, with stock trading at 5.87$ up more than 50 % above the previous closing price.

But the question is Will this fund will be sufficient for Citigroup to survive? Besides, other than question of survival, the bigger question is How these funds will be utilised? I think Mr. Pandit has to revisit on the bank policies, and look out for alternate ways to reduce banks expenditure.

Thanks&Regards,
Mohit Kumar