Posted by Becky Gulden
WASHINGTON (AP) - The government is on the verge of closing a deal to significantly boost its ownership stake in Citigroup.
In return, it will demand changes be made on the troubled banking giant's board and other conditions, according to a person with knowledge of the discussions.
The increased stake in Citigroup Inc. will not require additional money from taxpayers and the bank will still have to undergo a "stress test," such as those that banking regulators started conducting this week on the nation's biggest banks, said the source, who spoke on condition of anonymity because a deal hasn't been officially announced.
An announcement is anticipated later Friday.