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Another late night weekend deal was struck between the Fed and a credit crunch casualty: Citigroup.
In my previous post I just wrote about how shocked I was to see Citigroup make it through the weekend. No sooner than I hit “Publish,” news broke that the U.S. government has agreed to bailout Citigroup!
Madness!!!
The world could not afford to let Citigroup fail. Citi has a hand in all things money: retail banking, insurance, investments… you name it, they do it. Citi operates in 140 countries and has $2 trillion in assets on the books. According to MarketWatch, Citi has another $1.23 trillion in potentially troublesome assets held off of the company’s books.
Choosing what to include on the books? Why do they have a choice? Is it me or does it seem like these banks have way too many choices?
Anyway, the government is set to provide a $20 billion loan to raise capital and may guarantee up to $300 billion worth of Citi’s troubled assets. I don’t think $20 billion will be enough, but I hope they won’t have to go back and revise this like they did AIG.
How the mighty have fallen.
1214 days ago
[...] bailout deal was struck over a weekend in November. Just two months later, I thought this past weekend would [...]
1216 days ago
[...] bailout deal was struck over a weekend in November. Just two months later, I thought this past weekend would [...]
Thanks GOd that CitiBank is not going to become bankrupt. They have clients all over the world and this is a welcome relief to millions of people.
It’s ridiculous. Why do they have options? Consumers filing for bankruptcy and asking for relief should be so lucky!