Posted on 09/15/2009 7:01:50 AM PDT by h20skier66
As of a few moments ago Bloomberg broke a story suggesting that the US government would be selling off its stake in Citigroup stock. As much as I'm for the US Government and Taxpayer getting away from any of our illegitimate TARP children, Bloomberg's story is just off.
here is no such thing as a profit on the sale of this stock when, as a nation, we are into Citi Bank for much more than what was placed into Citi Stock. Specifically, from Bloomberg's article and confirmed via Pro Publica there will be at least $25 billion in warrants left unpaid. Then on top of this the Fed has a $220 billion back stop in place for Citi, and as tax payers we have also provided an additional safety net of $301 billion for bad loans. So with half a trillion in commitments to Citibank outstanding where does this profit come from?
(Excerpt) Read more at commoditynewscenter.com ...
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