Financial Times FT.com

Citi rescue raises questions over strategy

By Greg Farrell and Saskia Scholtes in New York

Published: November 26 2008 02:00 | Last updated: November 26 2008 02:00

With this week's government rescue, Citigroup has been established as "too big to fail". With its collapse a few days before, Downey Financial, a far smaller California lender, established that it was not.

But while markets cheered the government's rescue of Citi, the latest federal intervention into the US banking system has raised an additional question: what other banks are too big to fail, and how will investors know?

You have viewed your allowance of free articles. If you wish to view more, click the button below.

Read this