The Wall Street Journal is reporting that Citigroup and the Treasury are in negotiations to sell up to 40% of the bank to the federal government.
This would be the first full scale capitulation of a heretofore "too large to fail" institution. Citgroup was the world's largest financial institution in terms of deposits.
Will Citigroup be President Obama's conduit to force feed mortgage dollars into the consumer credit market, making loans no other private sector institution would make? Incredible as it may seem, I wouldn't be surprised to hear that idea floated in a few months.
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Comments (5)
"Hey look. A slippery slop... (Below threshold)1. Posted by ExSubNuke | February 22, 2009 9:26 PM | Score: 1 (1 votes cast)
"Hey look. A slippery slope. Let's hop on it and see what happens."
1. Posted by ExSubNuke | February 22, 2009 9:26 PM |
Score: 1 (1 votes cast)
Posted on February 22, 2009 21:26
2. Posted by GarandFan | February 22, 2009 9:28 PM | Score: 1 (1 votes cast)
I'm sure the community organizer will make sure that Citigroup uses the same yardstick that Fannie and Freddie used to 'qualify' home buyers.
Any bets on how many months it will take for Citigroup to go under.......again?
2. Posted by GarandFan | February 22, 2009 9:28 PM |
Score: 1 (1 votes cast)
Posted on February 22, 2009 21:28
3. Posted by ECM | February 22, 2009 9:45 PM | Score: 1 (1 votes cast)
I don't think it's so much a slope as a sheer drop about onto some very sharp rocks.
(We're all joking now, but the end result isn't going to be funny when we're eating one another to get our three squares.)
3. Posted by ECM | February 22, 2009 9:45 PM |
Score: 1 (1 votes cast)
Posted on February 22, 2009 21:45
4. Posted by Michael Laprarie | February 22, 2009 9:46 PM | Score: 1 (1 votes cast)
"Any bets on how many months it will take for Citigroup to go under.......again?"
What, with the "full faith and credit of the United States Government" behind it?
As a Citibank credit card holder, I am now officially scared.
4. Posted by Michael Laprarie | February 22, 2009 9:46 PM |
Score: 1 (1 votes cast)
Posted on February 22, 2009 21:46
5. Posted by Justrand![[TypeKey Profile Page]](http://wizbangblog.com/nav-commenters.gif)
| February 22, 2009 9:53 PM | Score: 1 (1 votes cast)
Damn...I don't have a high enough balance on my CitiBank credit card...gota go spend some more!
Then after they get nationalized, I'll just start telling them that I'm making my payments to THEM via my income tax withholding!
Piece of cake!
5. Posted by Justrand![[TypeKey Profile Page]](http://wizbangblog.com/nav-commenters.gif)
| February 22, 2009 9:53 PM |
Score: 1 (1 votes cast)
Posted on February 22, 2009 21:53