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online.wsj.com - 11/23/2008

Citigroup, U.S. in Talks to Create 'Bad Bank'

— online.wsj.com — Inc. is nearing agreement with U.S. government officials to create a structure that would house some of the financial giant's risky assets, according to people familiar with the situation. While the discussions remain fluid and might not result in an ... (more) Citigroup, U.S. in Talks to Create 'Bad Bank'

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Citigroup

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economistsview.typepad.com - 11/24/2008

The Citigroup Bailout

— economistsview.typepad.com — It's bailout time. Let's start with Paul Kedrosky: Good Bank, Bad Bank, and F---ed Bank : Apparently Citibank and the U.S. government (i.e., we taxpayers) have reached a deal whereby we will backstop something like $300-billion in screwed assets on ... (more) The Citigroup Bailout

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Citigroup

Comments vote downundo vote up EconLog: Library of Economics and Liberty found this 11/24/2008found this

7

bloomberg.com - 11/24/2008

Citigroup Gets Guarantees on $306 Billion of Assets (Update3)

— bloomberg.com — Nov. 24 (Bloomberg) -- Citigroup Inc. , facing the threat of a breakup or sale, received $306 billion of U.S. government guarantees for troubled mortgages and toxic assets to stabilize the bank after its stock fell 60 percent last week. Citigroup ... (more) Citigroup Gets Guarantees on $306 Billion of Assets ...

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Citigroup

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Statements by Fed, FDIC, Treasury on Citi Bailout
Calculated Risk — Form the Fed: Joint Statement by Treasury, Federal Reserve, and the FDIC on Citigroup The U.S. government is committed to supporting financial market stability, which is a prerequisite to restoring vigorous economic growth. In support of this commitment, the U.S. government on Sunday entered into an agreement with Citigroup to provide a package of guarantees, liquidity access, and capital. As part of the agreement, Treasury and the Federal Deposit Insurance Corporation will provide protection against the possibility of unusually large losses on an asset pool ...

The Citi Deal Looks Like Citi-Wachovia
Conglomerate — ... plus 300bp," that loan is available after Citi goes through its FDIC and Treasury guarantees), and the first bit of insurance of the toxic assets comes from the FDIC.  That's after Citi, as in its scotched Wachovia deal, takes the hit on the first $29 billion.  That latter agency in exchange gets Citi participation in its mortgage program - maybe a big thing, if the FDIC is right that securitized mortgages are not so difficult to modify. Here's the statement, here's the term sheet.  Note the new addition of mission statement ...

Citi Bailout
The Big Picture — ... bad investments.  (So much for Capitalism without failure) Where is the “Protection” for the taxpayers? Where are the clawbacks? How about going after the idiots that bought a third of a trillion dollars worth of junk, and then got paid large on it? Where is the sense of outrage and justice? At what point do taxpayers demand that the people responsible for creating this mess must pay their pound of flesh? > Sources: Joint Statement by Treasury, Federal Reserve, and the FDIC on Citigroup ...

Details on Citigroup (C) Bailout
Fund My Mutual Fund — ... Here are some highlights of the stunningly complex plan. (You can read the joint statement by the Fed, FDIC and Treasury here. Citi's press release ...

2009 Outlook: Angling For A Recovery
GoldSeek.com — ... Treasury and the Federal Deposit Insurance Corporation will provide protection against the possibility of unusually large losses on an asset pool of approximately $306 billion of loans and securities backed by residential and commercial real estate and other such assets, which will remain on Citigroup's balance sheet…In addition, Treasury will invest $20 billion in Citigroup from the Troubled Asset Relief Program in exchange for preferred stock with an 8% dividend to the Treasury.” Fed Following news of the bailout, Citigroup shares quickly doubled – disaster had apparently ...

Monetary Policy and the U.S. Dollar
GoldSeek.com — ... (TARP) passed through Congress and was signed into law on October 3, 2008. Under the program, on November 23, 2008 the Federal Reserve provides protection against the possibility of unusually large losses on an asset pool of approximately $306 billion of loans and securities backed by residential and commercial real estate and other such assets on Citigroup's balance sheet. On ...