Looks like Citibank just sucked up 33% of the big goverment bailout

[Slew Foot]

"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."

Looks like $250 billion just got accounted for, or at least, will be tied up.

Cant wait for the next bank/automaker/state government/hot dog vendor to come on by and ask for some more of my tax money.

 

[palehorse]

Any idea what the government demanded in terms of a return on investment? Links might help...

 

[Slew Foot]

http://news.yahoo.com/s/ap/200.../ap_on_bi_ge/citigroup

As far as I can tell, a cut on on the dividend for 3 years and limits to executive pay were all that was listed.

 

[dmcowen674]

Too big to fail

:laugh:

 

[PottedMeat]

Are these the same guys that wanted government help to buy Wachovia a month ago and tried to fight Wells Fargo who wanted no help at all?

 

[miketheidiot]

Originally posted by: PottedMeat

Are these the same guys that wanted government help to buy Wachovia a month ago and tried to fight Wells Fargo who wanted no help at all?

yes

 

[LunarRay]

Issue each US citizen 1000 ozs of Silver.... but held in trust for a time... induce super hyper inflation and then offest the debt owed (all of which became fixed at the beginning of the event) by the individual against the Silver in trust and issue the balance to the beneficiary of the Trust... Simple...

End of the day .. no one owes anyone.. the debt is paid down substantially and we begin anew...

 

[ICRS]

The reality is, citi needed wachovia just as much as wachovia needed someone to bail them out. When the wachovia deal fell through, citi was doomed. Its stock plumeted the momement wells said it was going to buy wachovia instead.

 

[smashp]

No wonder there was no TARP money for National City. They needed to save it all for Citi.


Ctrl-P

Ctrl-P

Ctrl-P

Ctrl-P

Ctrl-P

Ctrl-P

Ctrl-P

Ctrl-P

Away

 

[chess9]

Not to worry, the Saudis will bail out the US Treasury. It's all good.

Yo gotta' feel fo Hank
His life's in da' tank
Hatin' all deez banks
Got nuttin' left to yank
Cept' his skanky plank

-Robert

 

[CycloWizard]

So Citi isn't responsible for its debts, but I am responsible for my debts to Citi? Where is the bailout for my $85k in private student loans that I owe these bastards and have been faithfully paying? Ah, that's right - only if I am irresponsible and stop paying my own debts will someone else step in and pay them for me. Shame on me for living within my means.

 

[DealMonkey]

Originally posted by: CycloWizard
So Citi isn't responsible for its debts, but I am responsible for my debts to Citi? Where is the bailout for my $85k in private student loans that I owe these bastards and have been faithfully paying? Ah, that's right - only if I am irresponsible and stop paying my own debts will someone else step in and pay them for me. Shame on me for living within my means.

While I agree with your sentiment, isn't the CitiGroup situation different in the sense that these are bad loans made by CitiGroup? Meaning those irresponsible folks you refer to, have indeed stopped paying on their loans from CG, or will likely stop paying in the near future.

 

[TheSlamma]

Originally posted by: CycloWizard
So Citi isn't responsible for its debts, but I am responsible for my debts to Citi? Where is the bailout for my $85k in private student loans that I owe these bastards and have been faithfully paying? Ah, that's right - only if I am irresponsible and stop paying my own debts will someone else step in and pay them for me. Shame on me for living within my means.

You are not a big corporation, only they get bailouts. The most you could get as an individual is "assistance".

 

[mugs]

Originally posted by: LunarRay
Issue each US citizen 1000 ozs of Silver.... but held in trust for a time... induce super hyper inflation and then offest the debt owed (all of which became fixed at the beginning of the event) by the individual against the Silver in trust and issue the balance to the beneficiary of the Trust... Simple...

End of the day .. no one owes anyone.. the debt is paid down substantially and we begin anew...

Except that in addition to wiping out people's debt, you'd be wiping out people's wealth.

 

[CycloWizard]

Originally posted by: DealMonkey
While I agree with your sentiment, isn't the CitiGroup situation different in the sense that these are bad loans made by CitiGroup? Meaning those irresponsible folks you refer to, have indeed stopped paying on their loans from CG, or will likely stop paying in the near future.

Citi was irresponsible by giving them the loan in the first place. They should be penalized in the same manner I would be penalized: seizure of assets by those to whom the money is owed, garnishment of wages, et cetera. The person who made a bad loan should have their wages garnished to pay off the company's loss on said loan just like mine would be garnished if I failed to pay back part of my loan.

 

[StageLeft]

As long as the execs at citi get their XMas bonus, I'm pleased by this.

 

[DealMonkey]

Originally posted by: CycloWizard

Originally posted by: DealMonkey
While I agree with your sentiment, isn't the CitiGroup situation different in the sense that these are bad loans made by CitiGroup? Meaning those irresponsible folks you refer to, have indeed stopped paying on their loans from CG, or will likely stop paying in the near future.

Citi was irresponsible by giving them the loan in the first place. They should be penalized in the same manner I would be penalized: seizure of assets by those to whom the money is owed, garnishment of wages, et cetera. The person who made a bad loan should have their wages garnished to pay off the company's loss on said loan just like mine would be garnished if I failed to pay back part of my loan.

So if you loan someone $20 and they fail to pay you back, some thugs should bust into your place and seize some CDs and DVDs (or other assets) as punishment? Isn't that just adding insult to injury?

Again, while I appreciate your distaste for these gov't bail-outs, what do you think might happen if CitiGroup was allowed to fail? What impact would that have on our already fubar'ed economy? Frankly, I think it would be disasterous.

 

[palehorse]

Originally posted by: DealMonkey
I think it would be disasterous.

...which is why these bailouts will continue until the entire country goes bankrupt.

They've got you -- and a few hundred million others like you -- believing that the sky will fall the moment capitalism is allowed to take its course. IOW, they've won, and we're screwed.

Bailouts FTL.

 

[LegendKiller]

Originally posted by: palehorse

Originally posted by: DealMonkey
I think it would be disasterous.

...which is why these bailouts will continue until the entire country goes bankrupt.

They've got you -- and a few hundred million others like you -- believing that the sky will fall the moment capitalism is allowed to take its course. IOW, they've won, and we're screwed.

Bailouts FTL.

Cutting off one's nose to spite the face, all in the name of capitalism, isn't that great of a position.

 

[StageLeft]

Originally posted by: LegendKiller

Originally posted by: palehorse

Originally posted by: DealMonkey
I think it would be disasterous.

...which is why these bailouts will continue until the entire country goes bankrupt.

They've got you -- and a few hundred million others like you -- believing that the sky will fall the moment capitalism is allowed to take its course. IOW, they've won, and we're screwed.

Bailouts FTL.

Cutting off one's nose to spite the face, all in the name of capitalism, isn't that great of a position.

Even you must admit there's a certain comedy to all of this. The amount of fear mongering being perpetuated by those begging for free money (because despite any ostensible strings, that's what this is, it's free or exceedingly low cost) is reaching hilarious proportions. These people are becoming like spoiled children and we all know that when you give a spoiled kid what he wants, he just bitches the next time harder until he gets it again and then soon you become like the downtrodden mother who knows she should say no but just hates seeing her darling little sh*ty son cry and bitch, so she gives him that money and he tells her thanks in a snotty tone and runs off and she wonders where she went wrong.

 

[LegendKiller]

Originally posted by: Skoorb

Originally posted by: LegendKiller

Originally posted by: palehorse

Originally posted by: DealMonkey
I think it would be disasterous.

...which is why these bailouts will continue until the entire country goes bankrupt.

They've got you -- and a few hundred million others like you -- believing that the sky will fall the moment capitalism is allowed to take its course. IOW, they've won, and we're screwed.

Bailouts FTL.

Cutting off one's nose to spite the face, all in the name of capitalism, isn't that great of a position.

Even you must admit there's a certain comedy to all of this. The amount of fear mongering being perpetuated by those begging for free money (because despite any ostensible strings, that's what this is, it's free or exceedingly low cost) is reaching hilarious proportions. These people are becoming like spoiled children and we all know that when you give a spoiled kid what he wants, he just bitches the next time harder until he gets it again and then soon you become like the downtrodden mother who knows she should say no but just hates seeing her darling little sh*ty son cry and bitch, so she gives him that money and he tells her thanks in a snotty tone and runs off and she wonders where she went wrong.

I do agree it is getting funny in some areas. I saw the mayor of Atlanta screaming for billions, saying "THIS WILL CREATE 1,000 JOBS!".

This situation fucking sucks. People couldn't get control over themselves, now everybody pays. I hate it but it is also reality. We'd pay one way or another.

 

[palehorse]

Originally posted by: LegendKiller

Originally posted by: palehorse

Originally posted by: DealMonkey
I think it would be disasterous.

...which is why these bailouts will continue until the entire country goes bankrupt.

They've got you -- and a few hundred million others like you -- believing that the sky will fall the moment capitalism is allowed to take its course. IOW, they've won, and we're screwed.

Bailouts FTL.

Cutting off one's nose to spite the face, all in the name of capitalism, isn't that great of a position.

Can you honestly say that the continued bailouts are a healthy precedent? When will they end? Where is the line drawn?

I see this as merely postponing the inevitable; and it demonstrates a willingness to give handouts to the very worst corporations in America. In over your head? Too large for your own good? Too careless with your own lending or books? Too focused on building a shitty product?

No problem... just ask Uncle Sam for help.. he'll give you the money!

uhg...

 

[LegendKiller]

Originally posted by: palehorse

Originally posted by: LegendKiller

Originally posted by: palehorse

Originally posted by: DealMonkey
I think it would be disasterous.

...which is why these bailouts will continue until the entire country goes bankrupt.

They've got you -- and a few hundred million others like you -- believing that the sky will fall the moment capitalism is allowed to take its course. IOW, they've won, and we're screwed.

Bailouts FTL.

Cutting off one's nose to spite the face, all in the name of capitalism, isn't that great of a position.

Can you honestly say that the continued bailouts are a healthy precedent? When will they end? Where is the line drawn?

I see this as merely postponing the inevitable; and it demonstrates a willingness to give handouts to the very worst corporations in America. In over your head? Too large for your own good? Too careless with your own lending or books? Too focused on building a shitty product?

No problem... just ask Uncle Sam for help.. he'll give you the money!

uhg...

No, I don't think it is a healthy precident. However, "tough love" when you're playing with the world economy isn't smart either.

The sad thing is that this wouldn't have ever happened had we still had Glass Steagall in place, had the Treasury not allowed tye banks to uber-leverage, and we had changed Fin45/FAS140 a long time ago while regulating CDS.

This is where we need to get to. Re-Regulating the banks because they obviously cannot control themselves.

 

[Jaskalas]

Originally posted by: Slew Foot
Title: Looks like Citibank just sucked up 33% of the big goverment bailout

"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.

Your numbers are wrong if you consider that they've already spent $4 trillion and have now publically stated that they intend to raise that sum to $7.4 trillion. $306 Billion VS $7,400 Billion comes out to 4% of the government bailout.

 

[SP33Demon]

Citi shares up 57%.