Citigroup to Repay $20 Billion in Bailout Money

Citigroup announced Monday that it has reached an agreement with federal regulators to pay back the $20 billion in taxpayer assistance it received last year under the Toxic Asset Relief Program, or TARP. The company will raise money from investors to return the federal relief money as soon as possible, and then the government will sell the $25 billion in Citi stock that it currently holds over the next year.

"We owe the American taxpayers a debt of gratitude and recognize our obligation to support the economic recovery through lending and assistance to homeowners and other borrowers in need," Citigroup CEO Vikram Pandit said in a statement.

Though the deal came earlier than expected and is seen as a victory for both TARP and Citi, the company agreed to much stricter terms than some other banks.

Bank of America announced in early December its intention to return the $45 billion it borrowed under TARP, and Goldman Sachs, Morgan Stanley and other smaller banks have already repaid their bailouts. Once Citigroup pays back its share, Wells Fargo will be the only remaining bank not to have repaid its TARP money. The unprecedented financial intervention by the government was passed by the Bush administration just over a year ago.