Nov. 22 (Bloomberg) -- The U.S. government may step in to rescue Citigroup Inc. after a crisis in confidence erased half the bank's stock-market value in three days, according to investors and analysts. Citigroup's $2 trillion of assets dwarfs companies such as American International Group Inc. that got support from the U.S. government this year. Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben S. Bernanke may favor a rescue to avoid the chaotic aftermath of Lehman Brothers Holdings Inc.'s bankruptcy in September. "Citi is in the category of `too big to fail,'" said Michael Holland, chairman and founder of Holland & Co. in New York, which oversees $4 billion. "There is a commitment from this administration and the next to do what it takes to save Citi." One option is for the Federal Reserve and U.S. Treasury to create a special vehicle to purchase bad assets from Citi. The Fed has already erected several such funds, such as the Commercial Paper Funding Facility, to provide liquidity to the financial system. Typically, the Treasury would provide some first-loss equity or insurance fee, such as $50 billion provided to the CPFF, to protect the central bank and give the fiscal authority a stake.
Nov. 22 (Bloomberg) -- The U.S. government may step in to rescue Citigroup Inc. after a crisis in confidence erased half the bank's stock-market value in three days, according to investors and analysts.
Citigroup's $2 trillion of assets dwarfs companies such as American International Group Inc. that got support from the U.S. government this year. Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben S. Bernanke may favor a rescue to avoid the chaotic aftermath of Lehman Brothers Holdings Inc.'s bankruptcy in September.
"Citi is in the category of `too big to fail,'" said Michael Holland, chairman and founder of Holland & Co. in New York, which oversees $4 billion. "There is a commitment from this administration and the next to do what it takes to save Citi."
One option is for the Federal Reserve and U.S. Treasury to create a special vehicle to purchase bad assets from Citi. The Fed has already erected several such funds, such as the Commercial Paper Funding Facility, to provide liquidity to the financial system. Typically, the Treasury would provide some first-loss equity or insurance fee, such as $50 billion provided to the CPFF, to protect the central bank and give the fiscal authority a stake.
to create a special vehicle to purchase bad assets from Citi
yup, a chamberpot for their highnesses, pronto!
special vehicle, my ass...
how long are the public going to continue wiping their incontinent nether regions?
especially a public that's seeing the gold of years of hard work stored in savings plans and pensions, turned to shit by these reverse midas's...
who's going to bail out the government, when it's finished bailing out its friends?
prole power, that's what. put yer shoulder to the wheel, don't just sit there watching the money channel, do something meaningful to bring change, go shopping!
earn to shop, cradle to grave, 'appy sheeple, we!
funny how the chinese are discovering the joys of capitalism, while we in the west are heading towards socialism (but don't you dare call it that!).
blend well, allow to precipitate, and what will be left?
communocapitalism? capitocommunism?
oh, well i'm sure our enlightenment principles will arrive to save the day, lol.
funnier, still, i actually have forced myself to believe that, or i'd throw in the towel...
yes we can... ~Government budget deficits are not nearly as dangerous as the deficits we have created in vital and complex natural systems.~ Naomi Klein.
