Citigroup unloading the Family Truckster (NYSE:C)

Citigroup Inc. (NYSE:C) is said to be in talks to offload up to $3 billion in car loans as it tries to remove billions of dollars of troubled assets from its balance sheet. To entice buyers, Citigroup is also offering some deal financing, next thing you know they'll be selling the Family Truckster versus the Super Sports Wagon.

(ft.com) The securitisation market’s failure to recover from its slump during the crisis is complicating efforts by Citigroup and other troubled financial groups such as AIG to sell unwanted assets and repair their balance sheets, bankers and executives say.

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People close to the situation said that Citi had opened talks with private equity groups and hedge funds over the sale of $3bn-worth of car loans as part of its efforts to cleanse its balance sheet of billions of dollars in troubled assets.

To make the business more attractive, Citi is believed to have offered to provide the buyers of the loans with finance for a few years after the sale.

Bankers said that the initial response from potential bidders had been encouraging.

Some of the Citi loans have already been securitised under the term asset-backed securities loan facility (Talf), a US government programme aimed at supporting the ailing securitisation market.

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SOURCE: http://www.ft.com/cms/s/0/1f812892-143c-11df-8847-00144feab49a.html?nclick_check=1