nytimes.com - 11/23/2008
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Federal regulators were considering a new rescue for Citigroup on Sunday, a step that could mark a third leg of the government’s broader efforts to bolster the nation’s financial industry. >
online.wsj.com - 11/23/2008
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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'
federalreserve.gov - 11/24/2008
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federalreserve.gov —
Joint Statement by Treasury, Federal Reserve, and the
FDIC on Citigroup Washington , DC -- The U.S.
government is committed to supporting financial market stability, which is a prerequisite to restoring vigorous economic growth. In support of this ...
(more)
FRB: Press Release--Joint statement by Treasury, Federal ...
online.wsj.com - 11/24/2008
Comments
Blog Reactions
Plan Begins to Emerge to Rescue Citigroup
DealBook —
... of their investments as much as preferred stock. Once the nation’s largest and mightiest financial company, Citigroup lost half its value in the stock market last week as the bank confronted a crisis of confidence. Although Citigroup executives maintain the bank is sound, investors worry that its finances are deteriorating. Citigroup has suffered staggering losses for a year now, and few analysts think the pain is over. Many investors worry that the bank needs additional capital. Go to Article from The New York Times »
WSJ: Citigroup, U.S. Near Agreement on Bad Assets
Calculated Risk —
... by the agreement up to a certain threshold. ... After weekend discussions between Citigroup executives and officials at the Federal Reserve and Treasury Department, the parties are hoping to unveil an agreement Sunday evening, the people said. The announcement is expected tonight. Hey, I thought Citi WAS the bad bank! UPDATE: Here is a story from Bloomberg: Citigroup, Fed Said to Weigh Plan to Limit Losses on Bad Assets And from the NY Times: Plan Begins to Emerge to Rescue Citigroup Under the proposal, the government would ...
Sunday links: survival mode
Abnormal Returns —
... The last best hope for Citigroup (C): good bank, bad bank. (NYTimes.com, WSJ.com,
Finally the one of the few constants at Citigroup over the past few years, Bob Rubin, is coming under scrutiny. (Market Movers, naked capitalism)
Many hedge funds are in “survival mode.” (WSJ.com)
“There has, in other words, been nowhere to hide from the collapse of 2008.” ( ...
Citi Bailout
The Big Picture —
... 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
http://www.federalreserve.gov/newsevents/press/bcreg/20081123a.htm
Citigroup Gets Government Guarantees on $306 Billion of Assets
Bradley Keoun
Bloomberg, Nov. 24 2008
http://www.bloomberg.com/apps/news?pid=20601087&sid=aBdUcxoRPkp4&r
U.S. Approves Plan to Help Citigroup Weather Losses
ERIC DASH
NYT, ...
U.S. Sets Plan to Help Citi Weather Losses
DealBook —
... Under that plan, Citigroup agreed to bear a certain level of Wachovia’s losses, with the federal agency absorbing the rest. In exchange, Citigroup agreed to give the F.D.I.C. preferred stock. It is also similar to an effort orchestrated by Swiss financial regulators for UBS , another big global bank. Last month, the Swiss central bank and UBS reached an agreement to transfer as much as $60 billion of troubled securities and other assets from UBS’s balance sheet to a separate entity. Go to Article from The New York Times » ...
Citi’s Woes Began With Failed Wachovia Bid
DealBook —
... last several years, it fell apart. Less than a week later, Wells Fargo , the powerful San Francisco-based bank, swooped in with a higher offer. Citi was left in the lurch, without a business that was vital to its future. That collapse began a steady decline in Citigroup shares that snowballed this week as speculation grew that the bank might require a government bailout, a forced merger that would crush common equity holders, or an ouster of Mr. Pandit. On Sunday, federal regulators approved a radical plan to stabilize Citigroup in an arrangement in which the ...
Frank Rich on Summers, Geithner, Obama Economic Team
The Big Picture —
... three days after the election was, to put it mildly, disconcerting. Ever since his acclaimed service as Treasury secretary in the Clinton administration, Rubin has labored as a senior adviser and director at Citigroup, now being bailed out by taxpayers to the potential tune of some $300 billion. Somehow the all-seeing Rubin ...
Related Content
Citigroup
krugman.blogs.nytimes.com 11/24/2008 — Mark Thoma has the rundown of informed reactions. A bailout was necessary - but this bailout is an outrage: a lousy deal for the taxpayers, no accountability for management, and just to make things perfect, quite possibly inadequate, so that Citi will ...
Credit Risk Rises on Citigroup Breakup Speculation
globaleconomicanalysis.blogspot.com 11/21/2008 — I have been saying for over a year that Citigroup would not survive in one piece. That option is looking increasingly likely as the Citigroup Board Weigh Options . Citigroup Inc.'s board meets today to discuss the bank's options after Chief Executive ...
Citigroup - Somebody Please Say "Game Over"
informationarbitrage.com 1/14/2009 — From the Wall Street Journal Online : Until recently, Citigroup Chief Executive Vikram Pandit had
repeatedly backed the company's "universal bank" model. But with
directors and executives now bracing for a fourth-quarter operating
loss of at least ...
Citi on Its Way to Breakup?
nakedcapitalism.com 1/12/2009 — The Wall Street Journal tonight says, " Citigroup Takes First Step Toward Breakup ." But what does that mean, exactly? Or had the Journal gone a bit far with the notion that the bank is doing some way, way overdue housecleaning? The eye-popping bit ...
Citigroup Bailout Raises Viability Questions For Entire Banking System
globaleconomicanalysis.blogspot.com 11/25/2008 — Still more details are emerging from the weekend bailout of Citigroup . And in what is no surprise in this corner, it appears Citigroup is not well capitalized and Faces Pressure to Slim Down . The government rescue of Citigroup Inc. reversed the ...
WSJ: Citigroup, U.S. Near Agreement on Bad Assets
calculatedrisk.blogspot.com 11/23/2008 — UPDATE2: CNBC reports: Government Now Said To Have Cold Feet From the WSJ: Citigroup, U.S. in Talks to Create 'Bad Bank' Citigroup Inc. is nearing agreement with U.S. government officials to create a structure that would house some of the financial ...
Rubin Plans to Step Down at Citigroup
dealbook.blogs.nytimes.com 1/9/2009 — Robert E. Rubin, the former Treasury secretary who is an influential director and senior adviser at Citigroup, will step down after coming under fire for his role in the bank's current troubles, The New York Times's Eric Dash reports.
Since joining ...
Citigroup May Get Government Rescue, Investors Say (Update1)
bloomberg.com 11/22/2008 — Nov. 21 (Bloomberg) -- Citigroup Inc. will probably get rescued by the U.S. government after a crisis in confidence erased half its stock-market value in three days, investors and analysts said. Citigroup has more than $2 trillion of assets, dwarfing ...
Citigroup’s Third U.S. Rescue May Not Be Its Last, Analysts Say
bloomberg.com 2/28/2009 — Feb. 28 (Bloomberg) -- The U.S. government’s third attempt to help rescue Citigroup Inc. won’t stanch the company’s losses , which will continue to swell and may lead the bank to require more money in coming months, analysts said. Yesterday’s action ...
Bailout Monday is Back —
The Big Money 11/24/2008
Following round-the-clock weekend negotiations, the federal government late on Sunday agreed to bail out yet another bank, this time giving the troubled Citigroup a $20 billion lifeline in the form of a direct investment and guaranteeing $306 ...
Citigroup's Books Are Fiction —
The Big Money 11/24/2008
Over and over, as its stock price plunged last week, Citigroup Inc. repeated the same tired line. Citigroup has “very strong capital,” the bank kept saying.
Its capital was so strong that the New York-based lender yesterday was ironing out yet ...
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