Citi Gets Cash Infusion, Cuts Dividend


NEW YORK (AP) -- Wall Street had been expecting this.

Citigroup is cutting its dividend after dismal fourth-quarter earnings news. The bank's mortgage portfolio lost 18.1 billion dollars in value.

The nation's largest bank has received a 12.5 billion-dollar investment from outside investors, including nearly seven billion dollars from the Government of Singapore Investment Corporation.

The investment adds to the 7.5 billion-dollars that Citi got in November from the Abu Dhabi Investment Authority in exchange for a 4.9 percent stake in the company.

Citigroup says the cut of the quarterly dividend to 32 cents a share, along with the Asian investments and a stock offering of about two billion dollars, will help boost its Tier 1 capital ratio, a measure of its financial strength.

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