Citigroup Inc. (NYSE: C)
November 19, 2008
Citi Finalizes SIV Wind-down by Agreeing to Purchase All Remaining Assets
New York – In order to complete the wind-down of the Citi-advised Structured Investment Vehicles ("SIVs"), Citi announced today that, in a nearly cashless transaction, it has committed to acquire the remaining assets of the SIVs at their current fair value, estimated to be approximately $17.4 billion, net of cash, as compared to $21.5 billion at September 30, 2008. The decline primarily reflects asset sales and maturities of $3.0 billion and a decline in market value of $1.1 billion since the end of the third quarter 2008.
Citi will record these assets as Available for Sale. As a result of the transaction, Citi's GAAP assets will be reduced by approximately $6 billion and risk-weighted assets will be increased by approximately $2 billion.