In a move said to be an attempt to protect a controversial investment made this summer, a private equity fund partially owned by Citigroup will expand its stake in ailing subprime lender IMC Mortgage to 95% and extend an estimated $1.5 billion in credit to the company.

The private equity fund, Greenwich Street Capital Partners, is owned partially by Travelers Investment Group and run by Mark Weill, son of Citigroup co-chairman Sandy Weill. It has already invested more than $50 million in IMC, one of the largest lenders to homeowners with poor credit.

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