0 votes

U.S. Treasury Admits that 2008 Bailout of Citi was Based on `Fear of the Unknown'

The U.S. Treasury Department’s 2008 rescue of Citigroup Inc., once the world’s largest bank, was “strikingly ad-hoc,” a government bailout watchdog said.

“While there was consensus that Citigroup was too systemically significant to be allowed to fail, that consensus appeared to be based as much on gut instinct and fear of the unknown as on objective criteria,” according to a report today from Neil Barofsky, special inspector general for the Troubled Asset Relief Program. “The conclusion of the various government actors that Citigroup had to be saved was strikingly ad hoc.”

Treasury in November 2008 gave Citigroup a $20 billion emergency infusion, on top of $25 billion received the prior month, from the $700 billion TARP fund

http://www.bloomberg.com/news/2011-01-13/citigroup-45-billio...

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.

I have been fighting this beast (Citibank) for over a year and..

now is set for trial at the end of Feb 2011.

http://www.dailypaul.com/node/145572

Updates will follow...

"First they ignore you, then they laugh at you, then they attack you, then you win!"
GANDHI

"The belief is worthless if the fear of social and physical punishment overrides the belief."

Thanks for the information...

all is appreciated...

"First they ignore you, then they laugh at you, then they attack you, then you win!"
GANDHI

"The belief is worthless if the fear of social and physical punishment overrides the belief."

FDIC Chair Sheila Bair on

FDIC Chair Sheila Bair on Citigroup: "They have $500 billion in foreign deposits that nobody can guarantee."

SIGTARP just came out with a report on the extraordinary assistance provided to Citigroup during the crisis, the $306B 'ringfence' by the Fed/FDIC/Treasury of Citigroup assets. This report was requested by Rep. Alan Grayson in June, 2009. I'm still going through it. What is striking is just how fragile Citigroup really was/is. The $500B in foreign deposits that were not explicitly guaranteed seems significant to me, though I'm quite confused as to its implications. If anyone has thoughts, let me know.

http://www.sigtarp.gov/reports/audit/2011/Extraordinary%20Fi...

Follow me on Twitter for breaking news from a libertarian perspective

www.twitter.com/AbolishTheFed

Its called THEFT

No wonder everyone's furious.

The Big City Liberal types engaged in outright THEFT across America just to keep people like Christy Mack raking in the billions....

Why in the world did TARP pass? Bizarre...

My concern is that the banks never paid back the money

For if they did, why is our debt so high? I hear that the bailout helped the banks and so on, but who really knows what monies if any came back to the coffers after the fact. The sums also seem insignificant versus the debt totals from the mortgage crisis alone, 700 billion would not have scratched the surface and many still argue that 5 trillion might not have scratched the surface. It is my opinion that they simply used TARP as a way to keep the market looking volatile long enough to take every penny they could steal from Joe Public until the gig was up, and only time will tell if my opinion holds water...

Always remember:
"It does not require a majority to prevail, but rather an irate, tireless minority keen to set brush fires in people's minds." ~ Samuel Adams
If they hate us for our freedom, they must LOVE us now....

Stay IRATE, remain TIRELESS, an

So how would you resolve something as ugly as FHA and Freddie...

I would start by breaking them up so they aren't all connected at the hip.

Its going to be a huge mess to untangle....FHA and Freddie Mac and Fannie, they're all tied together, which leads to the mistaken idea they need to be purchased.

Forget that. Untangle them from each other, setup public RICO suits on each entity. Separate Fannie from Freddie, from the FHA as well. Get them having to pay their large settlements for destroying so many homes.

No sense having the Federal Government "do" anything here.

Break them up, close the revolving door. Implement standard regulations again & cancel the Fed's faux Washington regulations on these creatures.

If they behave badly anyway, there's ten thousand other mortgage companies people will deal with or choose. Start allowing the Free Markets to win, like Massachusetts has recently done.

45 billion?

They took the money and invested it overseas imo and the taxpayer picked up the tab. They should be put in jail the whole lot of them. This is totally criminal imo.

The Treasury people and Citigroup people involved need to be brought to task.

donvino

Don't you love it?

We bailed the bankers out in 1989, then again in 2008. Then they give themselves big bonuses and foreclose on us.

Thieveing the poor; gifting the rich.

I opposed President Theodore Roosevelt bailouts. I told him us poor folk didn't have enough money to bailout banks. He did it anyway.

President Woodrow Wilson celebrated our monetary system disappearing into the Fed, 1913. what is left? We have credit. Absurd.

President Franklin D Roosevelt was to the banks, "a dime a dozen." What a mess. His image is still our dime.

[ The gentleman's time has expired. ]

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul