Citigroup (NYSE: C) received notice from the federal government that they will not be subject to rulings from the Treasury Department’s paymaster Kenneth Feinberg in 2010. Bank of America (NYSE: BAC) had previously received confirmation when the firm repaid its debt related to the Troubled Asset Relief Program.
Citigroup paid back $20 billion of the total $45 billion in aid that it received from TARP, meaning that it is no longer receiving “exceptional assistance” and is no longer receiving the type of aid that would warrant the paymaster’s oversight, according to a letter issued to Citigroup by the Treasury Department on Wednesday.
The US Treasury also said on Wednesday that Citigroup, the FDIC and the Federal Reserve have also terminated a loss-sharing agreement on a $300 billion pool of Citigroup’s toxic assets. The US Treasury said that the federal government did not suffer any losses related to that agreement.
The decision to free Citigroup from Feinberg’s oversight is one of the many decisions that the Treasury released on Thursday, including the approval of compensation packages for several executives at General Motors, GMAC, and Chrysler.