Citigroup was one of the leaders in the worthlessderivatives scam that trashed the world economy. Now they are rewardedfor their corruption and incompetence. Way to Wya.[:'(][:@]
Quote:
The flurry of activity by Bush, which had not been announced in advance, came the morning after the government's agreement to shoulder hundreds of billions of dollars in possible losses at Citigroup and to plow a fresh $20 billion into the troubled company.
Citigroup was one of the leaders in the worthlessderivatives scam that trashed the world economy. Now they are rewardedfor their corruption and incompetence. Way to Wya.[:'(][:@]
Quote:
The flurry of activity by Bush, which had not been announced in advance, came the morning after the government's agreement to shoulder hundreds of billions of dollars in possible losses at Citigroup and to plow a fresh $20 billion into the troubled company.
Dems have the majority, they can stop anything they want...
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I love Christmas lights. They remind me of the people who voted for Obama. They all hang together; half of them don't work, and the ones that do, aren't that bright.
For those who understand, no explanation is needed. For those who do
not understand, no explanation is possible.
A golf course is a willful and deliberate misuse of a perfectly good rifle range.
Isn't the $20 Billion a part of the $700 Billion that was already approved?
Probably. However, the big deal is the fact that the fed agreed to back hundreds of billions in possible losses at Citigroup. These "possible losses" are the hundreds of billions in toxic paper that Citigroupholds: Toxic paper that will most likely be revalued at $0.The fed has the authority to act without congressional approval.
Isn't the $20 Billion a part of the $700 Billion that was already approved?
Probably. However, the big deal is the fact that the fed agreed to back hundreds of billions in possible losses at Citigroup. These "possible losses" are the hundreds of billions in toxic paper that Citigroupholds: Toxic paper that will most likely be revalued at $0.The fed has the authority to act without congressional approval.
I just read that it was part of the original $700 Billion Congress approved. So far, the Fed has spent about half of that money. Citigroup is to take the first $29 Billion in losses on about $300 Billion of "toxic paper", and thereafter, Citigroup takes 10% of the losses and the govt backs 90% of the losses. I don't think that it will "most likely be revalued to $0." These are, after all, mortgage backed securities, and the land underlying those mortgages is pretty likely to always retain some value. So, if the mortgages go bad, Citigroup/the Fed ends up owning the underlying land, which will then be resold to recoup part of the loss. I don't think these deals are just being done willy-nilly. They certainly have actuaries running the numbers and making an assessment of the likely amount of the losses that are being backed.
These are, after all, mortgage backed securities, and the land underlying those mortgages is pretty likely to always retain some value.
They are not mortgage backed securities. They are"derived" from mortgage backed securities. Big difference.
Isn't the entire package of "derivatives" ultimately backed by the mortgage? I thought that the way it worked is that when mortgage payments come in, they gets divvied up among the various holders of the derivatives, based on whatever the allocation parameters were, and that in the event of a default in the underlying mortgage, the value of the property, when it gets sold after a foreclosure, also gets apportioned to the various derivative holders.
Citigroup Bailout is 100s of Billions
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