Treasury to mull Citi-style rescues

The Treasury Department opened the door Friday to using a Citigroup-style rescue package to help other troubled financial institutions.

The financial lifeline thrown to Citigroup Inc. (C) in late November involved backing billions in risky assets and providing the banking giant with a fresh capital infusion.

Treasury said participation by other companies in such a program would be weighed on a case-by-case basis. Treasury said it would consider, among other things, whether the “destabilization” of a financial institution could threaten the viability of creditors and others. It also would weigh the extent to which the institution faced a loss of confidence because of the troubled assets it held.

The information was contained in guidelines for the initiative, dubbed the Targeted Investment Program, unveiled on Friday.

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