Skip to comments.Oversight panel: Citigroup has implicit federal guarantee
Posted on 03/04/2010 8:31:13 AM PST by Kartographer
Citigroup Inc. enjoys an implicit government guarantee without which it would be viewed as more risky, a key government watchdog told the company's chief executive Thursday.
CEO Vikram Pandit, in turn, said Citigroup /quotes/comstock/13*!c/quotes/nls/c (C 3.44, +0.04, +1.18%) has scaled back on its proprietary trading -- a key bone of contention for lawmakers wrestling with how to improve oversight of the biggest financial institutions.
"The sheer magnitude of Citigroup's operations, and the company's history of receiving extraordinary government support, has led this panel to an inescapable conclusion: The United States government will bear any burden and pay any price to ensure that Citigroup does not fail," said Elizabeth Warren, chairwoman of the congressional oversight panel, in remarks directed at Pandit.
(Excerpt) Read more at marketwatch.com ...
That’s too bad...because propping up zombies prevents credit from reaching the market.
It’s like saving all of the coma patients while letting all of the walk-ins die in the emergency room.
The coma patients may still be alive, but they’re still in comas.
Citi is dead to me, and Obama/Pelsoi may not have noticed, but Uncle Sugar is running out of money. Citi’s death is being dragged out, but still inevitable.
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