CDB-Citigroup talks meet government opposition

China Development Bank’s (CDB) attempt to invest in Citigroup may have run into opposition from the Chinese government, the Wall Street Journal reported. The newspaper cited sources familiar with the situation as saying "senior officials" had decided not to support a deal. CDB has been in negotiations to invest US$2 billion in Citigroup, which has suffered losses from subprime lending in the US. While details of the negotiations have not yet surfaced, a deal between the two firms could include an equity investment and the purchase of debt.