Posted on 12/18/2009 10:17:22 AM PST by FromLori
When contacted by the Washington Post to explain the special $38 billion tax deal the government is giving Citigroup, officials at the Department of the Treasury offered this explanation:
Treasury officials said the government needed to grant the tax break in order to sell its shares in Citigroup because the company could not afford the loss. Officials also said that preserving the tax break would help the government sell its shares at a higher price.
If any other shareholder engaged in this kind of behavior, he'd probably be indicted. Rep. Dennis Kucinich, D-Ohio, is rightly planning hearings on this debacle in his subcommittee, but that doesn't mean the proper lessons will be learned about government ownership of industry.
It looks like the Govt has put a limit on the decline of C stock. They refused to sell at the market price. C’s sale of additional stock was a success..at a price lower than the Govt would accept. Today there is a lot of buying of C stock.
Not only are these few banks to big to fail..they are too big not to make a profit and grown stockholder equity.
ping and related
Citigroup Does The Impossible: It Screws US Taxpayers AGAIN
Treasury total and complete liars now whether one likes Taiibi or not he details it in this report about obama
http://www.rollingstone.com/politics/story/31234647/obamas_big_sellout/print
and
U.S. gave up billions in tax money in deal for Citigroups bailout repayment
http://www.washingtonpost.com/wp-dyn/content/article/2009/12/15/AR2009121504534.html?hpid=topnews
Meanwhile, as U.S. policymaker tout the newfound health of the post-TARP banking system and investors hope future profitability will make the current dilution worthwhile, Whalen notes some very savvy foreign investors are heading in the other direction.
The Kuwait Investment Authority recently sold its $3 billion stake in Citigroup and The FT reports is considering changing its business relationship with the bank, including transferring its funds on deposit at Citi. Meanwhile, The Abu Dhabi Investment Authority is trying to abort an agreement to buy $7.5 billion of Citigroup stock, claiming the bank misled it about the investment.
Citigroup: Watch The Insiders
http://blog.atimes.net/?p=1281
http://www.businessinsider.com/citigroup-watch-the-insiders-2009-12
So Much For The Taxpayer Profit In Citi: Treasury Shares To Be Offloaded Over 12 Months After Investors Balk At Overpriced Toxic Holdings
And here is proof that Citigroup has proudly desceneded into total worthlessness (from a Citi December 11 report). When even S&P is ahead of the curve, it is time to call it a career:
http://www.scribd.com/doc/24055944/Greek-Banks-Home-Work
http://www.zerohedge.com/article/greece-default-risk-surges
An Epic Failure For Citis Capital Markets Team
http://www.businessinsider.com/an-epic-failure-for-citis-capital-markets-team-2009-12
Citigroups Latest Secret Tax Bailout Is An Outrage And Farce, Kucinich Vows To Investigate
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