There's been a lot made of the move by Citi and other banks to have the government take a larger stake in the companies--and the latest news from the Treasury is that it agrees. It has ostensibly blessed the idea of accepting more common shares in lieu of preferred shares. Thus dividend payments would ease, as would repayment pressure. And there's also the boost to tangible common equity, notes the Washington Post. 

The government may be poised to boost its influence, but a lot of people think the government is already calling the shots. The changes apply to the government's existing investments in roughly 350 financial firms; these banks can replace already issued shares with the new convertible-to-common preferred shares. 

For more:
- here's the Washington Post article

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