Citi, US Reach Deal to Convert Government Stake

[Triumph]

Is it time for me to cash in on my Citicard rewards? I think I have about $900 coming to me from the cash back program. This is perfect, I get my money from Citibank before they go bankrupt, and use it to buy another AR-15 before they get banned! It's called making the best of a bad situation.

 

[Hacp]

Originally posted by: Evan

Originally posted by: Hacp

Originally posted by: Drift3r

Originally posted by: Hacp

Originally posted by: ayabe

Originally posted by: Hacp
So if Citi goes bankrupt, the taxpayers lose 100+ billion dollars. Thanks again Obama.

Or you could just let them fail to the tune of what a trillion or two?

Dur.

What we could do is wipe out the shareholders, let the people who own the debt be the new shareholders, and have citi issue fresh debt.

Wipe out the shareholders? What do you mean by this please explain because you sound like you've been playing way to much monopoly. Shareholders will and should be expected to be compensated if their stock is removed from their ownership without their consent. Also the nature of their debt is a little more then what they owe their stockholders.

Its called bankruptcy. Have you ever heard of the term?

Let them go bankrupt like Lehman? Do you really want to get into a debate about how smart a move that was?

Its not a real bankruptcy. Its just going through the procedures without really being "bankrupt". Wipe out the shareholders, convert enough bonds that are on the bottom of the ladder to share, and issue new debt. They could probably do it in one Saturday sitting. They'll go bankrupt Saturday night and be a solvent company the next morning!

Of course, they can't do it on their own, but if the Obama Administration steps in and cuts down all the red tape, we won't be risking billions in taxpayer money propping up the shareholders of Citi.

 

[First]

Originally posted by: Hacp

Originally posted by: Evan

Originally posted by: Hacp

Originally posted by: Drift3r

Originally posted by: Hacp

Originally posted by: ayabe

Originally posted by: Hacp
So if Citi goes bankrupt, the taxpayers lose 100+ billion dollars. Thanks again Obama.

Or you could just let them fail to the tune of what a trillion or two?

Dur.

What we could do is wipe out the shareholders, let the people who own the debt be the new shareholders, and have citi issue fresh debt.

Wipe out the shareholders? What do you mean by this please explain because you sound like you've been playing way to much monopoly. Shareholders will and should be expected to be compensated if their stock is removed from their ownership without their consent. Also the nature of their debt is a little more then what they owe their stockholders.

Its called bankruptcy. Have you ever heard of the term?

Let them go bankrupt like Lehman? Do you really want to get into a debate about how smart a move that was?

Its not a real bankruptcy. Its just going through the procedures without really being "bankrupt". Wipe out the shareholders, convert enough bonds that are on the bottom of the ladder to share, and issue new debt. They could probably do it in one Saturday sitting. They'll go bankrupt Saturday night and be a solvent company the next morning!

Of course, they can't do it on their own, but if the Obama Administration steps in and cuts down all the red tape, we won't be risking billions in taxpayer money propping up the shareholders of Citi.

Lehman already went through it, we've already seen the results; the reaction to Lehman was disastrous for all intents and purposes.