Financial Roundup: Citi Reaches U.S. Deal, "Say on Pay" Sped Up, WaMu Brings Savings

Citi reaches deal with U.S. -- After days of intense negotiating, the U.S. government has reached a deal to exchange $25 billion in emergency bailout money for a 36 percent equity stake in Citigroup. Shareholders will see their ownership shrink to 26 percent and dividends on common shares are being eliminated. So far, Citi has received $45 billion in federal bailout money but no new federal funds are needed in the deal. [Source: Huffington Post]

"Say on Pay" plans sped up -- Hundreds of firms will soon be getting notices from the SEC that they have to submit their executive pay plans for a shareholder advisory vote of confidence this year and not in 2010 as expected. The move shows the Obama administration's backing of "Say on Pay" votes. [Source: The SEC]
Budget beefs up SEC regulation. -- President Barack Obama's proposed $3.6 trillion budget would increase the SEC's budget by 13 percent to 1.06 billion and the money will be used to hire more regulators. [Source: SEC]
JP Morgan Chase expects WaMu savings -- Acquiring Washington Mutual, a failed Seattle thrift, last year will bring about $2 billion in savings to JPMorgan Chase. The savings include about $1.35 billion in job cuts. [Source: The Associated Press]

Georgia banks complain of rules -- Officials at Peach State banks such as Buckhead Community Bank complain that "mark to market" accounting rules hurt them when they have to deal with valuing foreclosed houses. A law barring troubled banks from tapping brokered deposits also needs changing, they say. [Source: Atlanta Journal-Constitution]
FDIC reserves plummet -- Reserves in the Deposit Insurance Fund fell 45 percent during the fourth quarter to $18.6 billion due to the banking crisis. The FDIC is expected to charge a special assessment to replenish the fund when it meets today. [Source: American Banker]