WASHINGTON (Reuters) - The Treasury Department announced on Friday that it will convert a significant share of the preferred stock it holds in struggling bank Citigroup to common stock as long as others also do so.
In an early-morning announcement, Treasury said it would convert dollar-for-dollar its preferred shares to match conversions by private preferred holders in a bid to strengthen Citigroup's capital base.
It said the transaction, which does not involve pumping more government cash into the bank, "does not increase the amount of Treasury's investment in Citigroup."
(Reporting by Glenn Somerville; Editing by Theodore d'Afflisio)
