Citigroup freezes home repossessions
November 11 2008 - The US bank Citigroup is halting repossessions for most of its struggling mortgage borrowers in response to pressure for a softer approach in tackling the vast American sub-prime loans crisis.
Citi said it was imposing a moratorium on foreclosures for all clients willing to work “in good faith” to restructure mortgages, as long as they have sufficient income to make payments of some sort.
The initiative came amid fresh signs of the turmoil gripping the financial sector. Late on Monday, the credit card company American Express revealed it was turning itself into a bank, which makes it eligible for aid under the US government’s $700bn (£444bn) bail-out fund. American Express has struggled with a surge in bad debts on customers’ cards. The 158-year-old firm said offering high-street bank accounts would “build a larger deposit base to broaden our funding sources”.