This is beyond pathetic.
In an act of monumental folly, the U.S. government is throwing the Vikram Pandit-led Citigroup a $306 billion lifeline following the collapse of its shares last week.
This is on top of the $25 billion the government has already put into Citigroup under the TARP (Troubled asset Relief Program) initiative.
The plan essentially screws U.S. taxpayers for the greed and follies of the Citigroup swines.
Under the Shittygroup rescue plan, the U.S. will guarantee crappy assets of $306 billion (with Citigroup bearing the first $29 billion in losses)and invest an additional $20 billion in the troubled financial institution.
The crappy assets of Citigroup are mostly residential and commercial real estate loans and associated hedges.
And what do U.S. taxpayers get in return for the $306 billion bailout? Warrants to buy shares in this shitty bank.
We wouldn’t be surprised if future historians determine that this egregious bailout was prompted by the heavy stakes held by Middle East investors in Citigroup.
Just in case you thought that with the latest $306 bailout all is well and fine at Citigroup, you couldn’t be more wrong. Remember, Shittygroup has $1.23 trillion of ‘assets‘ in entities not on the bank’s balance sheet.
The U.S. did not bail out the auto industry blaming mismanagement and lack of a clear plan from Detroit.
As if the scumbags on Wall Street have a plan. And mismanagement is more rampant at U.S. financial institutions than in any other sector of American business.
Congress did not bail out the auto industry because those involved are primarily workers (remember, the unions supported Obama and the Plutocrat Republicans hate unions).
The $306 billion bailout of Shittygroup is beyond disgusting. Just not Capitalism.
I heard the news at work today and the first thing that popped into my head was, “SI will be spitting nails!”
Can you please refresh our memory by listing the figures doled out to AIG and some of the other companies for a comparison? $306 billion sounds astronomical on its own, but seems way higher than what some of these other companies have been given.
1. You write: Can you please refresh our memory by listing the figures doled out to AIG and some of the other companies for a comparison?
a.) These two pieces provide some idea of the sums involved
a.) U.S. Pledges Top $7.7 Trillion to Ease Frozen Credit – Bloomberg
b.) This New York Times table is a good source for comparison as well as tax payer money squandered away on different entities.
2. You write above: $306 billion sounds astronomical on its own
Screw the American Taxpayer bailout of Citigroup – Much of it is a guarantee of Citigroup’s toxic/bad assets…so the money will probably not go out of Treasury coffers immly but go it will eventually (Keep in mind that Shittygroup has nearly $1.23 trillion ‘assets’ in off-balance entities…so this $306b round of taxpayer charity will not be enough).
What was done today & earlier via TARP, purchase of commercial paper & guarantee of bank-to-bank loans is completely unconscionable – rape of the American people.
Did we hear someone complain of state-paid universal health coverage a few weeks earlier?
As the old saying goes, Whom the Gods wish to destroy they first make mad. We refuse to believe that sane elements are deciding these bailouts.
I stand by what I said about universal healthcare. It is not the utopian solution some people make it out to be.
On universal healthcare, we are with Obama (deliberate haste) and not with Augustus Caesar (festina lente or make haste slowly). Thank you, William Safire.
i dont understand this “worker” part of your statement …
Citi is a financial institution which is very much present in Retail Banking …its products are bought by everybody ..cutting across class ….whether you want to call them workers or managers ..i leave it to you …so this bailout has nothing to do with ideology / support for a political party …Right move by the Govt ..
The term workers was used in the context of labor unions in the auto industry. The auto industy has a powerful union called UAW, whose members supported Obama.
Unfortunately, the reigning ideology in the U.S. is capitalism when we are making money, socialism when we are not.