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Re: Citi news (Not good)
Think Citi can wants all the help it can find Mate!
Mike
Think Citi can wants all the help it can find Mate!
Mike
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Re: Citi news (Not good)
My first post here on iTulip after many months of lurking in the shadows. As such I should preface my post with a sincere thanks to all the incredibly informed posters here who I have learned a lot from.
I have deposits with Citi and just received this email from them:
Unlimited! A transparent attempt to discourage a run on the bank.Good news! Citibank is participating in the FDIC's Temporary Liquidity Guarantee Program. Through December 31, 2009, all of your non-interest and interest bearing checking deposit account balances are fully guaranteed by the FDIC for the entire amount in your account. *
And as a reminder, in October the FDIC increased the amount of insurance on eligible savings accounts -- such as savings, market rate, money market accounts, club and holiday accounts, and certificates of deposits -- from $100,000 to $250,000 through December 31, 2009.**
To learn more about FDIC insurance, visit the agency's web site at www.fdic.gov or call a Citibank representative at 1-800-374-9700. You may also call the FDIC at 877-ASKFDIC (877-275-3342) or TDD 800-925-4618.
* Coverage under the Temporary Liquidity Guarantee Program is in addition to and separate from the coverage available under the FDIC's general deposit insurance rules.Comment
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Re: Citi news (Not good)
OK, you have to admit that's kind of funny.Originally posted by thedanimal View PostComment
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Re: Citi news (Not good)
gosbank update...
yeh, no kidding. i can make money buying broken companies, too, if the taxpayer picks up the broken parts and I buy the working parts at a discount.Goldman, Morgan Stanley May Want Citigroup, CreditSights Says
Nov. 23 (Bloomberg) -- A purchase of Citigroup Inc. would “significantly” add to Goldman Sachs Group Inc. or Morgan Stanley’s earnings as long as the U.S. government absorbed losses on the embattled bank’s assets, according CreditSights Inc.
Buying Citigroup “would be significantly accretive to Goldman and Morgan Stanley’s earnings as the potential buyer would be acquiring a significant future earnings stream for a relatively low price,” David Hendler, an analyst at CreditSights in New York, wrote in a report yesterday. The buyer “would probably receive government support if it was needed.”
gosbank just go bigger...
Massive new Gosbank USA formed, market soars
Today the GSEs Fannie Mae and Freddie Mac merged with the Federal Reserve Bank, the US Treasury Department, Goldman Sachs, Citigroup and JP Morgan Chase to form Gosbank USA. The DJIA rose 280 points on the news.
Capping a year of crisis in the credit markets and global financial system that led to the nationalization of banks in Europe and England, the US today consolidated and merged ownership of the nation’s largest banks under co-chairmen former Federal Reserve Chairman Ben Bernanke and former Treasury Secretary and ex-head of investment banking giant Goldman Sachs Henry Paulson. “We made lemons out of lemon-aid and turned a terrible crisis for the US economy and the American people into a golden opportunity to expand the power and reach of the State,” said Paulson in a speech made today from the new headquarters of Gosbank USA on Wall Street, the new administrative center for several recently created US government planning authorities, including Gosfin USA, the State Central Financial Regulatory Authority, and Gosrec USA, the State Central Housing Reconstruction Authority.
The new bank gets its name from the Soviet era Gosbank.Comment
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Re: Citi news (Not good)
It's a deal...
Clearly it pays to be a friend of Hank. GM, Ford & Chrysler each need to buy a thrift and qualify for TARP.U.S. Agrees to Citigroup Bailout
Billions in Toxic Assets May Be Removed; New Phase for Government Bank Rescue
WASHINGTON – The federal government agreed Sunday to take unprecedented steps to stabilize Citigroup Inc. by moving to guarantee close to $300 billion in troubled assets weighing on the bank's books, according to people familiar with details of the plan.
Treasury has agreed to inject an additional $20 billion in capital into Citigroup under terms of the deal hashed out between the bank, the Treasury Department, the Federal Reserve, and the Federal Deposit Insurance Corp. Treasury officials will charge a higher interest rate for the capital injection -- 8% for the first few years -- than it has charged to dozens of other banks now borrowing money under the government's the $700 billion rescue package approved by Congress last month.
In addition to the capital, Citigroup will have an extremely unusual arrangement in which the government agrees to backstop a roughly $300 billion pool of its assets, containing mortgage-backed securities among other things. Citigroup must absorb the first $37 billion to $40 billion in losses from these assets. If losses extend beyond that level, Treasury will absorb the next $5 billion in losses, followed by the FDIC taking on the next $10 billion in losses. Any losses on these assets beyond that level would be taken by the Fed...
...The government is not expected to require any management changes, as that was seen as potentially being too destabilizing [ :eek: this has to be the funniest statement in the whole article]...
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Re: Citi news (Not good)
Ridiculous...Originally posted by GRG55 View Post
What are the odds that citi will be asking for another bailout in a few months?
Bernanke, Paulson and Co. are hell-bent on saving their precious financial system that they don't care if they bring down the whole economy down in the process, the irony is that they wont even be able to save the financial system that will be brought to its knees like the rest of the economy...
How can anyone bet against inflation now is beyond me...Comment
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Re: Citi news (Not good)
How is bringing down the economy caused by bailing out banks? That does not make any sense to me.Originally posted by tsetsefly View PostComment
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Re: Citi news (Not good)
where are they getting the money to bail out the banks???Originally posted by Tulpen View Post
the government can only redistribute wealth, borrow or print to fund its spending.
They are digging a deeper deficit hole and they are ramping up the printing presses to pour money into the system. That will cause inflation and a possible default on the debt, unless they deflate the currency enough to pay it back but that is in essence defaulting.
Who's the loser in all of this, holders of US assets and dollars=Americans who see the value of their money collapse.Comment
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Re: Citi news (Not good)
Not only that but the government can only borrow(steal) from one part of the economy to fund another. The Treasury and FED are working in concert to destroy anything and everything that can help fund Wall Street financial industries, short term. America will collapse under this plan.Originally posted by tsetsefly View PostComment
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Re: Citi news (Not good)
Absolutely right! 300 billion for Citi banksters, but not 25 billion for hundreds of thousands of manufacturing jobs?!Originally posted by tsetsefly View Post
Bush and his cronies are leaving the country in ashes before they leave. There will be nothing left for the Obama administration to save.
I'm trying to find a reason for the bail out package to continue. Paulson is letting his cronies loot what is left of America's future. Congress should step in and amend the bail out deal and require everything be approved by them. This is making things worse, not better.Comment
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Re: Citi news (Not good)
CITI ... Yep it is absurd ....
As to inflation ... could we have a situation where there is a dollar inflation outside of the US and a dollar deflation inside the is US? Would this answer the conundrum? Dollars will be worthless in the rest of the world while no one will have a job, have rediculous debt, and won't even attempt to buy anything beyond the neccessities. Imagine a BMW costing 5000 times yearly average earnings of s US citizen. Imagine OIL at $30 dollars but no one having the money to buy any. Foriegn tourists will visit the US like a third world country because it so cheap. They will cherry pick our college system starved for cash. We will have to pass foriegn land ownership rules. We will look like Mexico.Comment
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Re: Citi news (Not good)
JP Morgan nationalized? Don't make me laugh. It is the other way round.
JP Morgan has privatized the government. JPM IS THE GOVERNMENT, GS is their proxy. JPM will not fail, at least not publicly.
Guess where all that money went (which is not disclosed).Comment
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Re: Citi news (Not good)
In among the small print of all the news accounts about the Citi rescue, the FT found a bit of interesting detail: "Citi and the US government made it clear that the Citi arrangement would be extended to other banks that pose risk to financial system stability, if need be."
B of A next?
http://www.247wallst.com/2008/11/does-bank-of-am.htmlComment
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