economistsview.typepad.com - 11/24/2008
—
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 Citi's balance sheet. ... Here is the gist: To ...
bloomberg.com - 11/24/2008
—
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 ...
federalreserve.gov - 11/24/2008
—
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
Depression Mania
EconLog: Library of Economics and Liberty —
Mark Thoma has a roundup of commentary on the Citigroup bailout. I'll add a few thoughts. 1. For all of the Depression Mania, there is a lot of the U.S. economy that does not have to shrink. Manufacturing is pretty lean to begin with. Housing construction is already much lower than it has been in years. Unlike the 1930's, we have some very big sectors (health care, education, other government employment) that are unlikely to develop massive layoffs. The one sector that definitely needs to contract is the financial sector. Maintaining Citi as a zombie bank is not really ...
The Citigroup bailout
Marginal Revolution —
Lots of opinions. Ugh. Arnold Kling says ugh too, with this good line: "...the employment benefit of infrastructure projects is more likely to go
to the illegal immigrants who were laid off from housing construction
and who otherwise would be headed back home."
Krugman on Citigroup Bailout: "a lousy deal"
Calculated Risk —
... 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 be back for more. ...
Citi Save
Bear Mountain Bull —
Congratulations. As a taxpayer, you now own a chunk of Citigroup, whether you like it or not. Plenty of reactions over at Economist’s View - hat tip to ...
Monday links: banks are different
Abnormal Returns —
... Citigroup (C) gets a (lenient) lifeline. (breakingviews, Market Movers, The Baseline Scenario, Crossing Wall Street, Economist’s View, Big Picture)
Why Citigroup and not General Motors? “Banks are different.” (Curious Capitalist)
Fear beats greed. What next? (FT Alphaville)
TIPS vs. Treasuries. ...
25 Men Behind the Financial Crisis
Business Pundit —
... When disaster struck, it hit Citigroup especially hard. The bank lost more than $20 billion in 2008. It cut 75,000 jobs. And the government gave it $54 billion in TARP funds, then guaranteed $306 billion in bad assets. Citi remains a mess for the government, taxpayers, and the financial industry. ...
Related Content
Citi Bailout
ritholtz.com 11/24/2008 — The Bailout of Citigroup moves forward (Is this book ever going to be finished?):
“Treasury and the Federal Deposit Insurance Corporation will provide protection against the possibility of unusually large losses on an asset pool of ...
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 ...
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 ...
Citigroup, U.S. in Talks to Create 'Bad Bank'
online.wsj.com 11/23/2008 — 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 ...
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 ...
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 ...
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 ...
Follow WallStreetBlips on Twitter
