US to Guarantee Over $300 Billion in Citigroup Assets

[Tchocky]

The U.S. government has agreed to guarantee over $300 billion of Citigroup's troubled assets -- loans and securities backed by residential and commercial real estate and other such assets -- with conditions attached. These conditions are being hammered out. Citigroup will comply with enhanced executive compensation restrictions and implement the Federal Deposit Insurance Corp's mortgage modification program. This is on top of the $25 billion that the government gave Citi in October. In a late-night announcement after a weekend of talks about what to do to help Citi, the Treasury also said it and the FDIC will provide protection against losses in a pool of about $306-billion worth of loans and securities on Citigroup's balance sheet. The Treasury said the U.S. Federal Reserve stood ready to backstop any additional risk in the asset pool through an offer of a non-recourse loan.

The Treasury is giving $20 billion from the TARP to Citigroup in exchange for preferred shares. Here is the full story:

http://www.cnbc.com/id/27881439

[EBSB52]

The U.S. government has agreed to guarantee over $300 billion of Citigroup's troubled assets -- loans and securities backed by residential and commercial real estate and other such assets -- with conditions attached. These conditions are being hammered out. Citigroup will comply with enhanced executive compensation restrictions and implement the Federal Deposit Insurance Corp's mortgage modification program. This is on top of the $25 billion that the government gave Citi in October. In a late-night announcement after a weekend of talks about what to do to help Citi, the Treasury also said it and the FDIC will provide protection against losses in a pool of about $306-billion worth of loans and securities on Citigroup's balance sheet. The Treasury said the U.S. Federal Reserve stood ready to backstop any additional risk in the asset pool through an offer of a non-recourse loan.

The Treasury is giving $20 billion from the TARP to Citigroup in exchange for preferred shares. Here is the full story:

http://www.cnbc.com/id/27881439

1) And Citigroup announced that a shakeup of teh CEo's would just hurt operations, so that won;t happen.


2) And yet congress won't give the automakers anything as of yet, not even 25B, a fraction of what the finance co's want. Yea, keep the CEO's in 4ooM parties, **** corps that hire working people....... we laughed as the wall (Communism) fell, now they get to laugh...

[Shark79]

Citi Bank just bought 2 big banks in CR - Cuscatlan and Banco Uno.

[picantel]

Word is citi either has or will be soon raising everyone's interest rates on their credit cards. This way the consumer takes it up the ass not once but twice. I am starting to regret my obama vote already.

[Shark79]

This does seems to be the case picantel.

[pavyracer]

Word is citi either has or will be soon raising everyone's interest rates on their credit cards. This way the consumer takes it up the ass not once but twice. I am starting to regret my obama vote already.

Do you breed pidgeons?

[tacomax]

am starting to regret my obama vote already.

You should have listened to Larry Sinclair.

[THEGREAT30]

Everyone should have there credit card debt cancelled, where is the bailout plan for the people? That stimulus check might get you a bag of doritos.

[EBSB52]

Word is citi either has or will be soon raising everyone's interest rates on their credit cards. This way the consumer takes it up the ass not once but twice. I am starting to regret my obama vote already.

I'm sorry, you may not be aware of this, but Obama is the President Elect and has no other powers than his US Senate position. Maybe rethink your Bush vote 4 years ago.....

[daggerkobe]

Not surprising that Bush would bail them out..... isnt it owned by a Saudi prince?

Bush the Saudi lapdog. Doesnt matter if they support al Qaeda and flew planes into WTC.

And Citi group is planning to pay hundreds of million for naming rights to a stadium.

[daggerkobe]

$400M over 20 years for naming rights to Mets stadium.

[EBSB52]

Not surprising that Bush would bail them out..... isnt it owned by a Saudi prince?

Bush the Saudi lapdog. Doesnt matter if they support al Qaeda and flew planes into WTC.

And the US Gov is going to pay for Citi group to pay hundreds of million for naming rights to a stadium.

Fixed it for ya

[picantel]

I'm sorry, you may not be aware of this, but Obama is the President Elect and has no other powers than his US Senate position. Maybe rethink your Bush vote 4 years ago.....

I did not vote for bush 4 years ago. I sat at my computer wondering wtf the american people were thinking.

[picantel]

Everyone should have there credit card debt cancelled, where is the bailout plan for the people? That stimulus check might get you a bag of doritos.

Average credit card debt per household is like 8500. amount of households is around 111 million. 945 billion would take care of all credit card debt if they just paid it off for everyone. the people would get something out of it and the financial companies would get a huge cash infusion into their business from the paid off debt. Instead the cc companies are raising everyone's interest rates while stealing their money through the bailout. they win twice and the consumer gets screwed twice.

[picantel]

Do you breed pidgeons?

lol no the pigeon was one of larry sinclairs

[Seattle Slew]

I got a fixed 3.99 rate on a lifetime transfer about 4 years ago from Citi when I called to cancel the credit card. Never use the card, been paying $150 a month on a $13,000 balance that is now $8,800. The credit cards are still the best place for loans if you play your cards right.

The bank loan system in the U.S. is a scam.

[EBSB52]

I did not vote for bush 4 years ago. I sat at my computer wondering wtf the american people were thinking.

Then................ how can you blame Obama?

You wrote: Word is citi either has or will be soon raising everyone's interest rates on their credit cards. This way the consumer takes it up the ass not once but twice. I am starting to regret my obama vote already.


Kinda like when people blamee Clinton for the first attack of the WTC, 4 1/2 weeks after he took office. Since Obama had nothing to do with the bailout other than senatorial (1/100) interaction, how do you regret your vote for him?

[EBSB52]

Average credit card debt per household is like 8500. amount of households is around 111 million. 945 billion would take care of all credit card debt if they just paid it off for everyone. the people would get something out of it and the financial companies would get a huge cash infusion into their business from the paid off debt. Instead the cc companies are raising everyone's interest rates while stealing their money through the bailout. they win twice and the consumer gets screwed twice.

No dount they win twice. If the gov does not bail out the credit co's, we will be fvcked and into a depression for a decade. What pisses me off is that there aren't huge strings attached. I would want to fire the execs and have the gov basically take general ownership of the co's or no bailout.