Dec. 7, 2009 (United Press International) -- Citibank has a 10-day window of opportunity in which to raise funds to repay the U.S. government $20 billion in TARP loans, sources close to the bank said.
The government owns 34 percent of Citigroup (NYSE:C) , which has the stigma of being one of two major U.S. banks that have yet to announce it would repay the government, The Financial Times reported Monday.
Wells Fargo & Co., is the other bank. Last week, Bank of America (NYSE:BAC) said it would raise the $45 billion it needs to repay the government.
Citigroup, meanwhile, has about 10 days to arrange a sale to raise capital or it would have to wait until January. Executives have been negotiating with the Treasury, which remains concerned about Citigroup's health. The bank, meanwhile, says it has $240 billion in cash reserves and an improved prognosis.
While not impossible to raise funds after the 10 days, disclosure rules make it difficult to announce a deal close to the end of a quarter, TheStreet.com (NASDAQ:TSCM) said.
Citibank declined to comment on the situation.
