Citigroup that last week received a massive bailout, ponied up $100,000 according to one lobbyist....and has supported the conference for several years, but would not reveal an amount.
Sonesta Maho Beach Resort and Casino
Posted on 11/23/2008 8:43:14 PM PST by mathwhizz
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.
Citigroup would also agree to work to modify -- if possible -- troubled mortgages held in the $300 billion pool, using standards created by the FDIC after the collapse of IndyMac Bank.
The government is not expected to require any management changes, as that was seen as potentially being too destabilizing.
(Excerpt) Read more at online.wsj.com ...
ping
When is the revolution?
Well its not rocket science. About 20% of CitiCorp is now owned by Arab princes,as of last August, and they want CitiCorp undevolved. And they got it.
The Fed is a private corporation made up of the biggest 20 banks.. which is admittedly a little smaller than it use to be.
None the less the Fed’s part is a loan.
The FDIC gets it’s funds from banks paying a fee to it. Thus it’s the banks that are bailing itself out.
The Treasury is the only Gov’t unity that receives it’s funds from the taxpayer.
Thus 5 billion.
See 125.
Yep. It’s times like this I understand how Socialism begins to look appealing to the Average Joe.
you and Mathwizz both make me proud to be a Freeper!! I am in total accord with and am edified by your posts as a 71-year-old observer of our capitalistic system’s slippery slide.
Neither do I see any. It says here:
The government is not expected to require any management changes, as that was seen as potentially being too destabilizing.
Too destabalizing to change a management which has failed? It is capitalism itself which is failing here - the whole notion of a free market.
Citigroup that last week received a massive bailout, ponied up $100,000 according to one lobbyist....and has supported the conference for several years, but would not reveal an amount.
Sonesta Maho Beach Resort and Casino
Wonder how many sex acts $300 billion tax dollars will pay for?
Lookit this guy Rubin.......he's gotta be paying for it.
What woman in her right mind would voluntarily perform a sex act on this turkey?
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