Citigroup Rescue’s Cost May Rise With Jobless Rate

U.S. taxpayers may face mounting costs on federal guarantees of $301 billion of Citigroup Inc. loans and securities after unemployment reached a 26-year high, according to the Congressional panel overseeing bank-bailout programs.

The Federal Reserve Bank of New York projected a year ago that losses on the assets would surge if unemployment hit 9.5 percent and might ultimately cost the Treasury Department $3.96 billion over the 10-year life of the guarantees, the panel said in a Nov. 6 report. The jobless rate rose to 10.2 percent in October, the Labor Department said last week...

Bloomberg: Citigroup Rescue’s Cost May Rise With Jobless Rate