"Me Too... Me Too" Cries Citigroup (C) on TARP Repayment

Citigroup (NYSE: C) fell in the final hour of trading following reports from CNBC that the company is preparing to raise up to $20 billion in common stock to repay TARP.

An announcement is expected as soon as Thursday, according to the news channel.

The TARP repayment could dilute shareholders by 20%, according to analysts.

Earlier on CNBC, Citigroup Chairman Richard Parsons confirmed reports earlier in the week that the company was in negotiations with the government about how to repay TARP.

Citigroup was looking for terms similar to what Bank of America (NYSE: BAC) received when it paid back its $45 billion in TARP.

Citigroup's TARP repayment still won't likely relieve the company from government influence, as the U.S. still owns 33.6% of the common stock of Citi in addition to the $20 billion in TARP.

Shares of Citigroup closed down 1.3% today to $3.86.

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