Citigroup seeks more funds, offers more govt control

Banking giant Citigroup has approached the Obama Administration with request for more federal money in an effort to save it from collapse and in lieu of that has offered greater control to the government, media reports said today.

While the negotiations were still going on, media reports said the government could raise its stake in the bank to 40 per cent.

"Citigroup executives have approached federal regulators to discuss steps the government could take to strengthen the troubled company, according to two persons familiar with the matter," said The Washington Post in a report on Monday.

The move came as the Citigroup's stocks dipped below 2 dollar; the lowest in 18 years. Its stocks have dropped as much as 71 per cent this year.

This was despite the US government having pumped in $45 billion in the bank to help it stay afloat.

Last week, the White House said it did not favour more governmental control and nationalisation of banks. A privately held banking system is the correct way to go, the White House spokesperson Robert Gibbs told reporters on Friday.