#1 Breaking: US Gov't to guarantee $300B in Citigroup assets, loan $20B more11-24-2008, 12:46 AM
The federal government agreed Sunday night to rescue Citigroup Inc. by helping to absorb potentially hundreds of billions of dollars in losses on toxic assets on its balance sheet and injecting fresh capital into the troubled financial giant.
The agreement marks a new phase in government efforts to stabilize U.S. banks and securities firms. After injecting nearly $300 billion of capital into financial institutions, federal officials now appear to be willing to help shoulder bad assets, on a targeted basis, from specific institutions. (Terms of the deal)
[Citibank] Bloomberg News/Landov
Pedestrians walk past a Citibank branch in New York.
Citigroup is one of the world's best-known banking brands, with more than 200 million customer accounts in 106 countries. Its plunging stock price threatened to spook customers and imperil the bank.
If the government's rescue plan is a success, it could help bring stability to the entire financial system. If it doesn't, even deeper doubts about the industry's future could spread.
After a weekend of marathon talks between Citigroup executives and top federal officials, the parties late Sunday night nailed down a package in which the government will help protect the company from its riskiest assets.
No other info. I will post a link once one becomes available. This just broke on Reuters.
Last edited by Phillygirl; 11-24-2008 at 08:50 AM.**** Obama and **** you too.
11-24-2008, 12:49 AM**** Obama and **** you too.
11-24-2008, 03:20 AM
Wait wait wait....is this 300 Billion coming out of the so called 700 Billion? Or is this an entirely new transaction that Shifty Paulson is going to shovel out the backdoor?"Don't vote. It only encourages the bastards." -PJ O'Roarke
11-24-2008, 03:23 AM
Wait even more: I just started reading....this crap says the Fed is going to be insuring Citigroups potential future losses? So the American taxpayer is somehow now responsible if their crap turns into shit? (which you know it will) :mad:"Don't vote. It only encourages the bastards." -PJ O'Roarke
11-24-2008, 03:45 AM
Citi cannot fail.
However, I personally believe that banking should be federally controlled. The banking system is one of the few things that absolutely, positively HAS to be funded and work perfectly - like the military, our power grid, and possibly the Internet.
Some business can fail (like the automakers). Some cant (like banking). But rather than bailout private banks indefinitely, we should probably just bite the bullet and create a nationalized banking structure.**** Obama and **** you too.
11-24-2008, 04:05 AM
See I don't know if I can bite off on that. Nationalized anything just sends chills down my spine as being the beginning of the end for freedom. I know the banking institutions shouldn't fail but Hoover's increased Government intervention is what helped bring on the Depression in the first place.
I gotta go listen to some Tool and try to maintain my sanity now thanks to this bs. It's almost pitchforks & torches time 'round here."Don't vote. It only encourages the bastards." -PJ O'Roarke
11-24-2008, 05:12 AM
One thing is for sure, we can't have bank failures again. This is ridiculous. All of the pain we are feeling now was out of lack of regulation in banking that led to a failure in inter-bank and business lending. And here we are.
If we have a widespread banking failure, our currency becomes worthless and credit cards stop working. Then what do you do? Buy food with what?**** Obama and **** you too.
11-24-2008, 10:39 AM
We compounded it by removing the risk they had for making those bad decisions via the GSE guarantees through ginny mae, freddi mac and fannie mae.
The combination of rewarding bad decisions, removing the risk for those bad decisions and then FORCING bad decisions, is what led to the issues we have in the financial markets.
THAT loaded the gun. Oil prices and the inflation that they set off sapped the disposable income and ate into the mortgage payments was the match that set it off
In EVERY CASE, it was government interference with the free market that caused or contributed GREATLY to the problem.
Last edited by Constitutionally Speaking; 11-24-2008 at 09:46 PM.I long for the days when our President actually liked our country.
11-24-2008, 11:42 AM
Sic Hacer Pace, Para Bellum.
11-24-2008, 05:15 PM"Don't vote. It only encourages the bastards." -PJ O'Roarke
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