$20 Billion to "rescue" Citigroup
http://news.bbc.co.uk/2/hi/business/7745168.stm
The US government has announced a rescue plan for troubled banking giant Citigroup after its shares plunged by more than 60% last week.
The US Treasury is set to invest $20bn (£13.4bn) in return for preferred shares in Citigroup.
The Treasury and the Federal Deposit Insurance Corp will also guarantee up to $306bn (£205bn) of risky loans and securities on Citigroup's books.
The plan follows a $25bn injection of public funds in the bank last month.
Citigroup's market value fell to $20.5bn on Friday, compared with $270bn in 2006.
Last week the company announced 52,000 job losses worldwide, on top of 23,000 job cuts previously announced. It employs around 12,000 people in the UK.
Citigroup has lost more than $20bn in the past year because of the global financial crisis, suffering four straight quarterly losses.
Citibank UK deposit holders are covered by the Financial Services Authority. The Financial Services Compensation Scheme guarantees up to £50,000 per Citibank account holder, should the bank go bust.
According to CNN, Citi stock
According to CNN, Citi stock was down to $2 share. What a deal! Of course, later in the same story it mentioned that as part of the bailout, stock holders cannot receive more than one penny for dividend payments. Let's two hundred years to get your money back... We taxpayers sure know how to invest, don't we? Uhhh, how much stock did the banksters sell us?
Pat
BOHICA!!
Pat
BOHICA!!
Fed-Banksters to the rescue!
Malinvestment? Have no fear—the money transmogrifiers are here!
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"An error does not become truth by reason of multiplied propagation, nor does truth become error because nobody sees it. Truth stands, even if there be no public support. It is self sustained." -Mahatma Gandhi
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"...a nation that is afraid to let its people judge the truth and falsehood in an open market is a nation that is afraid of its people." -John F. Kennedy
What was that one dumb troll
What was that one dumb troll that touted how much stock they bought in Citi and how it wasn't going down :)
i wonder if the car dealers
i wonder if the car dealers will get bailed out
No soup for YOU!!
Evidently, there's an express lane for banks in the bailout store; all others must stand behind the yellow line and catch what crumbs they might, if there's any left over and if those in charge of the purse strings are feeling benevolent (with our money) that day. According to the LA Times article, Uh, Detroit, the Obama guys have a real problem with your bailout, there are certain rules and restrictions the Big Three must adhere to before any bailout cash would be considered for them:
My favorite part of the article is this snippet:
Yes, auto industry; your responsibility is NOT to run your business efficiently and profitably, but to write a really good begging note to impress the suits enough to shovel cash over to you.
Say, maybe we could send the auto makers to that Catholic church's class on self-sufficiency.
I am tired of the word rescue
They stopped using bailout and now everyone just accepts it.
It's quite obvious to me...
...that their research indicated that "rescue" was better in focus groups than was "bailout". Yet another instance of the dumbed-down American public being indoctrinated with doublethink.
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"An error does not become truth by reason of multiplied propagation, nor does truth become error because nobody sees it. Truth stands, even if there be no public support. It is self sustained." -Mahatma Gandhi
----
"...a nation that is afraid to let its people judge the truth and falsehood in an open market is a nation that is afraid of its people." -John F. Kennedy
Good observation----the new word being used
It makes them look like such charitable guys. The correct term would not be "rescue", or even "bailout" as that word does not define it all, but "accomplice" . They are partners in crime with fleecing the taxpayers to aid and abet the fraudulant actions of their selected banksters. What they are doing is not only unconstitutional, but illegal and who knows where it will end.