Citigroup Bailout: Feds Offer Massive Rescue Package To Financial Giant
The government unveiled a bold plan Sunday to rescue troubled Citigroup, including taking a $20 billion stake in the firm as well as guaranteeing hundreds of billions of dollars in risky assets.
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The $20 billion hot beef injection by the Treasury Department will come from the $700 billion financial bailout package. The capital infusion follows an earlier one _ of $25 billion _ in Citigroup in which the government received an ownership stake.
As part of the plan, Treasury and the FDIC will guarantee against the "possibility of unusually large losses" on up to $306 billion of risky loans and securities backed by commercial and residential mortgages.
Under the loss-sharing arrangement, Citigroup Inc. will assume the first $29 billion in losses on the risky pool of assets. Beyond that amount, the government would absorb 90 percent of the remaining losses, and Citigroup 10 percent. Money from the $700 billion bailout and funds from the FDIC would cover the government's portion of potential losses. The Federal Reserve would finance the remaining assets with a loan to Citigroup.
I hate going on a populist tangent but how come everybody else has to be adept at their jobs or face unemployment while CEO's still get rewarded for doing a bad job?
their ceo got a fat 72M check earlier this year
You know, recent material public statements regarding the solvency and health of citibank clearly were designed, in retrospect, to mislead markets.
The SEC and FBI need to be perp walking folks and airing their prison rape on the CCTV in the stock exchanges. Sick of companies going all Baghdad Bob saying everything is fine and then melting down the very next weekend.
their ceo got a fat 72M check earlier this yearI do not understand this. It is painfully obvious that there is conflict of interest between the board members of many companies and their executives. There is no quantifiable way to justify spending 72M on a single executive. There has to be some kind of reform in executive pay to come out of this mess
yeah it's not the libertarian dream, its the anarcho-capitalist nightmare.
and tauntaun, :rock . Flamethrowers on rich people would make a superb pay per view cable/satellite entertainment offering.
yeah it's not the libertarian dream, its the anarcho-capitalist nightmare.
and tauntaun, :rock . Flamethrowers on rich people would make a superb pay per view cable/satellite entertainment offering.
3) Begin firebombing the houses of executives. Their house will be spared if they fork over their ill gotten earnings within an appropriate time frame.
what EXACTLY did *we* say you dullard
quit projecting your hair-pulling markos moulitsina psychosexual fantasies onto us
2003. The law was signed in 2003.
We obviously aren't on the same brainwave here. But I'm off topic, so I'll take the blame.
what EXACTLY did *we* say you dullard
quit projecting your hair-pulling markos moulitsina psychosexual fantasies onto us
Weren't you arguing for the original bailout?
so why would i think citigroup as "too big to fail"? do you want your ass reddened in THIS thread, too, or are you just having a tough day?
So you are for the citibank bailout, but you dont agree with it?Could be worse. I'm for the war but against the troops! :usacry
that's not my stance
try again
i can be *for* something and not like it
money for them from the govt comes quick, i bet the bosses there have private jets too.
awesome, he shouldnt have to explain anything to the govt tho. We should make the people who employee large chunks of blue collar workers explain
got it in three!
i support the bailout inasmuch as a) there was a clear need for decisiveness in the marketplace; b) it was the least of the proposed evils; c) it increases government involvement in capitalist enterprise and begins the much-needed regulatory process. is it ideal, or even a good solution? hardly; and only time will tell, although i'm not optimistic (although it beats a circumstantial repeal of the capital gains tax by a crazy margin). does any of this add up to anything other than a dubious and heavily-qualified quasi-endorsement at best? i'd rather they be allowed to fail and put all of their asshole execs in the gutter if it wouldn't take the entire country's economic infrastructure down with them. i actually value individual americans and their livelihoods over JUSTICE LOL, and it's not an easy compromise to consider -- hence, the hope for the success of the bailout AND the desire to see every crooked ceo turned out into the street.
on the other hand, i'm not burdened with the pseudointellectual posturing of friedman-esque free market dogma, so maybe i should be thankful that my position is difficult
I'm not exactly knowledgeable about this stuff, but I just find it hard to believe there's no alternative option available beyond "let it all go down in flames" and "massive handouts to the financial elite requiring only nominal figleaf concessions in return".
money for them from the govt comes quick, i bet the bosses there have private jets too.
Seriously.awesome, he shouldnt have to explain anything to the govt tho. We should make the people who employee large chunks of blue collar workers explain
Seriously again.
And it's not okay to get involved with a company that deals with product no one wants, unless that product is billions of dollars in bad debt instead of a few remaining models that haven't been warmed over yet.
Never mind the fact that the current leadership of the big 3 came in to deal with a shitty situation and just couldn't, while the current leadership in most of these banks came in to handle mega profits and then fucked it up.
Bill Ford hasn't even been taking a salary for the last like 5 years. But he hires the fixer-upper who was at Boeing and pays him well, for like a year and a half, and now they are the bad guys.
well, if it comes down to it, I'm not sure that "let it all go down in flames" is actually a worse option if the other one ends up being "massive handouts etc., followed by it all going down in flames anyway X months later, to even worse effect thanks to the waste of resources on said massive handouts"
Beardo got schooled damn.
man i wish i was a CEOThis is very true. I have seen this and cronyism first hand in 90% of the jobs that I interviewed for over the past 1 1/2 years.
i could fuck up all i want while pocketing millions, i would preach about 'hard work' and 'responsbility' while slamming my pro-regulatory critics as communists
America, the libertarian dream? No. America, the new aristocracy....same as the old aristocracy of centuries past.