D
deleted15807
Guest
Why don't we just establish a 911 number to the Treasury Department for CEO's of companies and industries in trouble? So much for 'small government'. Privatize profit. Socialize the loss.
Citi rescue plan in the works
Sources say Treasury and Federal Reserve working on plan to stabilize the troubled bank.
Last Updated: November 23, 2008: 6:23 PM ET
WASHINGTON (AP) -- The government was weighing a plan on Sunday to rescue Citigroup Inc., whose stock has been hammered on worries about its financial health.
The Treasury Department and the Federal Reserve have been in discussions over the weekend to devise a strategy to stabilize the company, according to people familiar with the talks. They spoke on condition of anonymity because the discussions were ongoing.
A spokesman for New York-based Citigroup (C, Fortune 500) declined comment.
The company has seen its shares lose 60 percent of their value in the past week, reflecting a crisis of confidence among skittish investors who are worried all the risky debt on Citigroup's balance sheet will turn into losses as the economy worsens and the markets stay turbulent -- losses that could be nearly impossible to reverse.
Citigroup is such a large, interconnected player in the financial system that if it were to collapse it would wreak havoc on already fragile financial and economic conditions.
Analysts consider Citigroup the most vulnerable among the major U.S. banks -- especially after it failed to nab Wachovia Corp., which was bought instead by Wells Fargo & Co. That was a missed opportunity for Citi to gets its hands on much-needed U.S. deposits that would bolster its cash position. [URL]http://i.cdn.turner.com/money/images/bug.gif[/URL]
Citi rescue plan in the works
Sources say Treasury and Federal Reserve working on plan to stabilize the troubled bank.
Last Updated: November 23, 2008: 6:23 PM ET
WASHINGTON (AP) -- The government was weighing a plan on Sunday to rescue Citigroup Inc., whose stock has been hammered on worries about its financial health.
The Treasury Department and the Federal Reserve have been in discussions over the weekend to devise a strategy to stabilize the company, according to people familiar with the talks. They spoke on condition of anonymity because the discussions were ongoing.
A spokesman for New York-based Citigroup (C, Fortune 500) declined comment.
The company has seen its shares lose 60 percent of their value in the past week, reflecting a crisis of confidence among skittish investors who are worried all the risky debt on Citigroup's balance sheet will turn into losses as the economy worsens and the markets stay turbulent -- losses that could be nearly impossible to reverse.
Citigroup is such a large, interconnected player in the financial system that if it were to collapse it would wreak havoc on already fragile financial and economic conditions.
Analysts consider Citigroup the most vulnerable among the major U.S. banks -- especially after it failed to nab Wachovia Corp., which was bought instead by Wells Fargo & Co. That was a missed opportunity for Citi to gets its hands on much-needed U.S. deposits that would bolster its cash position. [URL]http://i.cdn.turner.com/money/images/bug.gif[/URL]