Citigroup Gets $300+ Billion Bailout...I think I had enough.
11-23-2008, 10:56 PM
#1
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Citigroup Gets $300+ Billion Bailout...I think I had enough.
http://www.nytimes.com/2008/11/24/bu...k.html?_r=1&hp
"Federal regulators approved a radical plan to stabilize Citigroup in an arrangement in which the government could soak up billions of dollars in losses at the struggling bank, the government announced late Sunday night.
The complex plan calls for the government to back about $306 billion in loans and securities and directly invest about $20 billion in the company. The plan, emerging after a harrowing week in the financial markets, is the government’s third effort in three months to contain the deepening economic crisis and may set the precedent for other multibillion-dollar financial rescues."
I personally stopped trying to understand the logic behind the choices of who gets billions of dollars and who gets screwed...I have not yet familiarized myself with the bail out details, so I will refrain from taking sides or issuing a judgment. However, where is this all going? The government is giving a $300+ bailout/guarantee while at the same time going to foreign countries for aid themselves?
Feel free to discuss, though I do not know what can be said that already has not...
"Federal regulators approved a radical plan to stabilize Citigroup in an arrangement in which the government could soak up billions of dollars in losses at the struggling bank, the government announced late Sunday night.
The complex plan calls for the government to back about $306 billion in loans and securities and directly invest about $20 billion in the company. The plan, emerging after a harrowing week in the financial markets, is the government’s third effort in three months to contain the deepening economic crisis and may set the precedent for other multibillion-dollar financial rescues."
I personally stopped trying to understand the logic behind the choices of who gets billions of dollars and who gets screwed...I have not yet familiarized myself with the bail out details, so I will refrain from taking sides or issuing a judgment. However, where is this all going? The government is giving a $300+ bailout/guarantee while at the same time going to foreign countries for aid themselves?
Feel free to discuss, though I do not know what can be said that already has not...
Last edited by LxJLthr; 11-23-2008 at 11:07 PM.
11-23-2008, 11:07 PM
#3
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When Saddam saw the end of his reign was near, he adopted a scorched earth policy. I suspect the Bush administration is trying to scratch the backs of their buddies while they still are officially in power; no different than the pattern of policy making in the last 8 years. 2 fricken terms.
"Fool me once, shame on you. Fool me twich shame on me."
(and no, I did NOT vote for Bush either time.)
"Fool me once, shame on you. Fool me twich shame on me."
(and no, I did NOT vote for Bush either time.)
11-23-2008, 11:15 PM
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So far it seems like the government rejected any help to the Detroit 3 who were asking for roughly the same amount [$25] and publicly scorned them [though rightfully so] for mismanagement and bad over sight. However, couple days later they hand over $20 billion to another company with its own mismanagement, greed and oversight issues without any big drama? Please feel free to correct me if I am missing something or am incorrect in this summary...But WTF?!?!
Last edited by LxJLthr; 11-23-2008 at 11:22 PM.
11-23-2008, 11:27 PM
#7
I don't disagree or agree with these bailouts but one thing I'm not ok with is how fast they are being written up and how they seem to be paying off a lot of top CEO people who should be taking pay cuts to help support the business or in opinion stepping down from their jobs.
I heard that some of the top boss of GMC were willing to take $1 salaries if they were helped themselves. To me that sounds like someone who is looking out for the company not just their pockets!
I heard that some of the top boss of GMC were willing to take $1 salaries if they were helped themselves. To me that sounds like someone who is looking out for the company not just their pockets!
11-24-2008, 12:23 AM
#8
I highly doubt the top execs at GM would be willing to work for essentially $1 unless there were other stipulations that could make them millions in the process.
11-24-2008, 12:26 AM
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I think that in order to put the domestic vehicle manufacturers on the "to save" list, there should be some serious oversight.
1. Top management MUST earn only $1/yr.
2. All UAW workers have their pay reset to the same wages and benefits as their non-union brethren that work in the import (Toyota, Subaru, Honda) factories.
3. Companies MUST develop alternative energy vehicles, and MUST provide them as a set percentage of total production, increasing each year, until they are solvent and consistently turning a profit.
4. Sell off EVERYTHING that is unnecessary to doing business. Riding in on corporate jets to ask for money simply is intolerable. Make them fly coach, or maybe slip them a ticket to business class, but never allow them to waste that much money flying in private jets.
1. Top management MUST earn only $1/yr.
2. All UAW workers have their pay reset to the same wages and benefits as their non-union brethren that work in the import (Toyota, Subaru, Honda) factories.
3. Companies MUST develop alternative energy vehicles, and MUST provide them as a set percentage of total production, increasing each year, until they are solvent and consistently turning a profit.
4. Sell off EVERYTHING that is unnecessary to doing business. Riding in on corporate jets to ask for money simply is intolerable. Make them fly coach, or maybe slip them a ticket to business class, but never allow them to waste that much money flying in private jets.
11-24-2008, 12:32 AM
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$300 billion bailout for Citi
So Citi cuts 50k+ jobs in the US, gets a $300 billion dollar handout courtesy of the American taxpayer... and to show their appreciation they move more jobs overseas: Citigroup to hire 1,000 workers in Philippines
What a slap in the face.
What a slap in the face.
11-24-2008, 09:24 AM
#11
I think that in order to put the domestic vehicle manufacturers on the "to save" list, there should be some serious oversight.
1. Top management MUST earn only $1/yr.
2. All UAW workers have their pay reset to the same wages and benefits as their non-union brethren that work in the import (Toyota, Subaru, Honda) factories.
3. Companies MUST develop alternative energy vehicles, and MUST provide them as a set percentage of total production, increasing each year, until they are solvent and consistently turning a profit.
4. Sell off EVERYTHING that is unnecessary to doing business. Riding in on corporate jets to ask for money simply is intolerable. Make them fly coach, or maybe slip them a ticket to business class, but never allow them to waste that much money flying in private jets.
1. Top management MUST earn only $1/yr.
2. All UAW workers have their pay reset to the same wages and benefits as their non-union brethren that work in the import (Toyota, Subaru, Honda) factories.
3. Companies MUST develop alternative energy vehicles, and MUST provide them as a set percentage of total production, increasing each year, until they are solvent and consistently turning a profit.
4. Sell off EVERYTHING that is unnecessary to doing business. Riding in on corporate jets to ask for money simply is intolerable. Make them fly coach, or maybe slip them a ticket to business class, but never allow them to waste that much money flying in private jets.
11-24-2008, 10:31 AM
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I do not have a problem with government stepping in and trying to do its job of stabilizing the country...it is how they have been going about it that irritates most people I think. I get the feeling government has been playing god in choosing who lives and dies. And the ones that live do not get any restrictions, conditions, limitations or obligations in exchange for that new found lease on life. Bank of America is a perfect example...they get a good portion of the bail out package, but spend it acquiring another bank right away rather than fix its existing problems or customers in trouble.
11-24-2008, 12:05 PM
#15
I don't need more cowbell dammit!
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I do not have a problem with government stepping in and trying to do its job of stabilizing the country...it is how they have been going about it that irritates most people I think. I get the feeling government has been playing god in choosing who lives and dies. And the ones that live do not get any restrictions, conditions, limitations or obligations in exchange for that new found lease on life. Bank of America is a perfect example...they get a good portion of the bail out package, but spend it acquiring another bank right away rather than fix its existing problems or customers in trouble.
If FDIC would declare full coverage for all deposits it would go a long way to unfreezing the credit market by decreasing the cost of funds to banks which would let them lend money at reasonable rates. However, that was not a part of the TARP program because the people who run the FDIC have their hands in Promontory Financial's pockets.