online.wsj.com - 11/24/2008
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[Sanford Weil] Associated Press Former CEO Sanford Weill
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'
economistsview.typepad.com - 11/24/2008
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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
bloomberg.com - 11/24/2008
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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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We, the People: Good Bank, Bad Bank, OUR BANK
Information Arbitrage —
... With the news that the U.S. Government is on the cusp of striking a Good Bank/Bad Bank restructuring deal with Citigroup, I am left with the following question: what took so long? And notwithstanding my brainy friend ...
Citi considers ‘bad bank’ plan
FT Alphaville —
The US federal government was nearing agreement Sunday night to rescue Citigroup by helping to remove billions of dollars in toxic assets from its balance sheet, reports the WSJ. The agreement, which could still fall apart, would mark a new phase in government efforts to stabilise US banks and securities firms. After injecting nearly $300bn of capital into financial institutions, US officials now seem willing to absorb bad assets from specific institutions. The Citi talks centre on the creation of a so-called “bad bank”, an outside entity to hold some of the group’s worst ...
Citibank
Across the Curve —
Here is Wall Street story on the bailout. The taxpayers have some skin in the game on this one.
http://online.wsj.com/article/SB122747680752551447.html?mod=testMod
http://www.fdic.gov/news/news/press/2008/pr08125a.pdf
Leverage by the numbers
Rolfe Winkler —
... Note today’s announcement by Citigroup and the government that the latter will “guarantee” (i.e. absorb losses) for some $306 billion of Citigroup’s toxic assets. If Citigroup had to take those losses, it would wipe them out. The same will be true for the other big banks. The Fed is already on the hook for $29 billion of debts owed by JPM’s new subsidiary Bear Stearns. And a few weeks ago the government agreed to guarantee ...
Treasury’s bailout “justifications”
Rolfe Winkler —
... articulating the “guidelines” for its “Targeted Investment Program,” the program under which taxpayers bailed out guaranteed $306 billion worth of Citigroup’s toxic assets back in late November. Why do you care? Because this program will likely be used to offer similar “guarantees” when Bank of America, Chase, Wells Fargo, Goldman and Morgan Stanley show up hat-in-hand on taxpayers’ doorsteps… ...
Opening Bell: 01.22.09
Dealbreaker —
... The $306B guarantee of assets last year wasn't enough so far as Mr. Parsons is concerned: he wants the assets off of his sheets for good. The conversation came about when Parsons started making comments to the affect of lending and why they aren't doing more of it, and somehow ended with this: "It's not a situation of, you do this for me, and I'll do that." This, as I'm sure you're aware, is effectively like saying "I maxed out my credit cards on Hookers, take those off my hands and I'll donate to the charity pool"... "except I might not." ...
Related Content
U.S. Agrees to Raise Its Stake in Citigroup
nytimes.com 2/27/2009 — In its most daring bid yet to stabilize Citigroup , one of the nation’s largest and most troubled financial institutions, the Treasury Department announced on Friday that it would vastly increase its ownership of the struggling company. After two ...
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 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 - 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’s ‘Capital’ Was All Casing, No Meat: Jonathan Weil
bloomberg.com 11/24/2008 — Commentary by Jonathan Weil Nov. 24 (Bloomberg) -- 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 ...
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: US Agrees to Bail Out Citi
nakedcapitalism.com 11/23/2008 — Oddly, I saw this comparatively late (about an hour), and no notice Bloomberg, which is perfectly willing to pick up news reports by competitors with attribution, and Asian markets ex Japan (closed today) were still in negative territory, although ...
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 ...
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