Citibank - Next up for rescue

Discussion in 'Politics' started by sargon20, Nov 23, 2008.

  1. sargon20

    Gold Member

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    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. http://i.cdn.turner.com/money/images/bug.gif
     
  2. cocktoberfest

    cocktoberfest New Member

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    Citi is a prime example of banks extending outrageous credit at enormous interest rates to people who can't afford it. Let em declare bankruptcy before they get any money - which should be in the form of a loan at 29 percent interest.
     
  3. B_starinvestor

    B_starinvestor New Member

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    They have a few divisions that they could easily sell to raise cash. Smith Barney is one example...JPMorgan would pay good money for the Smith Barney division.

    This is getting ridiculous. The flipping banks haven't even loosened up credit since this rescue plan started being deployed; they are just using the funds to buy smaller banks.

    Let'em go!!!
     
  4. 1BiGG1

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    This whole fucking financial mess has government written all over it and we need time to see where its involvement ends and corporate responsibility begins.

    I’m generally not much for government intervention but for the aforementioned reason and a genuine fear of a modern-day run-on-the-banks if a high profile institution like CITI goes under right now I am.
     
  5. MYDEEPTHROAT

    MYDEEPTHROAT Member

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    If any of the banks have to Go Under ... Citibank would be a GOOD 1 to go 1st !!!

    If they want to save some money ... they could cut back on some of their telemarketing calls ... or sending out all that junk mail with free/trial offers trying to get people to switch !!!

    It may be different in the US ... but up in Canada ... they can be a real pain ... :mad:

    IMHO
     
  6. sargon20

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    You know every domino that falls hits another domino and at some point the entire structure has collapsed. And NO ONE knows how all the dominoes are connected. That's why they can't allow anything to fail. Lehman Brothers went down and see what that did. What started out as a subprime mess has blossomed into a catastrophe which we still are NOT IN FRONT off. We are still playing whack-a-mole.

    Banking Regulator Played Advocate Over Enforcer
    Agency Let Lenders Grow Out of Control, Then Fail
     
    #6 sargon20, Nov 24, 2008
    Last edited: Nov 24, 2008
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