Next In Line For A Bailout: Citigroup

• November 24, 2008

Sure. Why not.

WASHINGTON – The government was weighing a plan on Sunday to rescue Citigroup Inc., whose stock has been hammered on worries about its financial health.
The Treasury Department and the Federal Reserve have been in discussions over the weekend to devise a strategy to stabilize the company, according to people familiar with the talks. They spoke on condition of anonymity because the discussions were ongoing.
One option being considered is taking some of the risky assets held by Citigroup off its balance sheet, a move that would give the company more breathing room and put it in a better position to raise capital. It was unclear, however, exactly how that option might be structured, the people said. Another option would be for the government to make another cash injection into the company.
A spokesman for New York-based Citigroup declined comment.

I have a mortgage with Citigroup. Since I, as a taxpayer, am footing the bill to bailout them out now I’m sure that if I have trouble making my mortgage in a couple of years they’ll be more than happy to waive a few payments for me right? Maybe cut the interest rate down a few points to give me some “breathing room?”
Because one good turn deserves another, right?

Tags: Domestic Issues, Politics

http://Array sayanything-2407

Citigroup will pay 400 Million for naming rights to METS Stadium. Citi’s CFO Gary Crittenden told Erin Burnett on our “Squawk on the Street” this morning. “I don’t think it’s an issue.”

Questions about whether the humungous 20-year, $400 million naming rights deal that the bank agreed to two years ago for the new Mets stadium would stand up began when the global financial crisis started. Then the global financial crisis hit. Then the 53,000 jobs cut at Citi, the second largest single job cuts in terms of volume in history. And last night, the government injecting $20 billion into Citigroup.

Sure, the $20 million a year is a drop in the bucket, but the important point to make here is that the folks at Citi are at least behaving as if the Mets made this contract so locked up, that they couldn’t get out of it no matter what the financial situation was.

“You know, those (naming rights) decisions were made in a different time and a different place and we have a legal and binding agreement around that and so I never heard it discussed,” Citi’s CFO Gary Crittenden told Erin Burnett on our “Squawk on the Street” this morning. “I don’t think it’s an issue.”

As far as the Mets are concerned, good for them. No other company, in this environment, would give them $20 million a year. I don’t even think they could get $12 million at this point, to be frank. As far as Citi is concerned, it’s definitely going to be uncomfortable. Whether it’s rational or not, they’re going to hear people asking how many employees they could have had back for that $20 million annual investment. The right question to ask, and I don’t know the answer to this is, what’s a better investment for the company, the people you could have working for those dollars or the naming rights to the stadium?

Things of course get doubly uncomfortable now that it’s taxpayer dollars on the line. No one expects that AIG sponsorship of Manchester United to stick now that the government is involved. Sure, the AIG bailout is much bigger, but that doesn’t take away from the fact that a high profile sports sponsorship doesn’t seem as necessary as it once did.


Naming rights for 400 MILLION for a ….STADIUM?!?!

And we are giving taxpayer monies to these jokers for a bailout?

Why don’t we just light the money on fire, at least we can get use out of it as heat during the winter instead of bailing out corporations like this.
sayanything-2407

Struggling Banks Paid President Clinton $2.1 million for â€˜Speeches’

Four major banks, including one that collapsed, two that received federal bailout money and one that filed for bankruptcy this past September, paid former President Clinton $2.1 million for 13 speeches he delivered on their behalf between 2004-2007, according to Senate financial disclosure statements filed by Sen. Hillary Clinton (D-N.Y.).

Citigroup paid Bill Clinton $700,000; Goldman Sachs paid $950,000; Lehman Brothers paid $300,000 and Merrill Lynch paid $175,000 to the former president for speeches during that time period. Sen. Clinton’s 2008 financial disclosure reports are not yet available.

Though some of the investment banks were able to entertain the former president more than once, each was eventually affected by the credit crunch.

Lehman Brothers filed for Chapter 11 bankruptcy in September. The bank’s stock had been slipping as it looked for a buyer, while the federal government promised no aid.

Merrill Lynch was purchased by Bank of America in mid-September for $50 billion. The bank’s share price and liquidity had been falling as it looked to sell, just days before the federal bailout of Wall Street.

The highly-regarded investment firm Goldman Sachs had reportedly possessed some of the largest private equity and hedge funds in the market.

But after its largest trading partner, AIG, received an $85 billion emergency government loan, Goldman Sachs shares fell. One week after Lehman Brothers filed for bankruptcy and Bank of America purchased Merrill Lynch, Goldman Sachs asked the Federal Reserve to modify its status to that of bank holding company — a move that brought tough regulations and close government supervision. In addition, Goldman Sachs became a recipient of $10 billion of the federal bailout money.

Citigroup recently received $25 billion of the federal bailout and is now expected to receive a $20 billion cash injection from the Treasury Department. In addition, the Treasury and the FDIC have promised to back most of the losses the bank might suffer, from its $306 billion pool of risky loans and mortgages. The bank’s shares dropped 60 percent last week.

ollie-B

This bailout fever is a sham. Even cities are wanting money.
It is time we write our congresspeople and let them know that we are mad as hell and not taking it anymore. No one will benefit from this ridiculous undertaking except the bankers, et al. And if the European and Asian markets fail, a bailout won’t save us from economic disaster.
markm

WOW, didn’t have to come to D.C. for a multi day tongue whippin’, no need for a NEW business plan presentation, no need to hear from Barney Frank about how making high risk loans is probably not a good long term business model…oh….never mind.
http://www.thevisionboardkit.com/ Ron Towns

Does anyone else feel like these bailouts are rash and feeble? The government needs a long-term plan, rather than trying to jump-start matters. They need to set a goal and see their idea through successfully!

I think another vital note from this bailout is that we now see the magnitude of this recession. We all should take the necessary steps to recession-proof our lives. In order to do so, I think a realistic estimate of the amount of money we need to cut back on is relevant. Additionally, we all should have a clear vision of our altered future- many people are still living as if we’re in the .com boom of the 90′s! Here’s a great resource I found helpful when reorganizing my future: http://www.thevisionboardkit.com. This kit actually outlines how to create a vision of your goals and dreams and explains how to execute them with success.
http://www.myspace.com/thekingscourt4u Gman

Talked to a banker friend this weekend who is a higher up in State Bank. He said that their part of the bailout is that, if they want some money to shore them up, they take a minimum of 18 million in Preferred Stock buy up, and a max of 50 some million. This has to be paid back over a long term, and is there to infuse capital into the bank to increase lending to ‘poor folks’.

Again, the government is supporting ‘high risk’ persons getting loans that they wouldn’t normally qualify for.

What a scam.

When is it time to pull back, circle the wagons, and ride out the storm?

The talking heads and government make it seem like the worst thing in the world would be that everyone stop spending beyond their means.

My Grandfather is now rolling over in his grave.

He saved for 13 years to buy his first car because he couldn’t pay cash for it.

The only payment he ever had in his life was his mortgage.
http://sayanythingblog.com/profile/pcND pcND

I own some Citigroup stock – I would prefer that as an owner of the Company they just bail me out instead.
WOOFX

Say Anything Bank of Dakotas

Then get in line.

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Next In Line For A Bailout: Citigroup

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