Citi Will Not be the Last Bank Bailed Out…

More bailouts for large banks, and more burden put on taxpayers… Happy Thanksgiving!

The government has guaranteed around $300 of bad debt in Citibank and has also given them $20 billion in a direct capital injection.  And, from the sounds of it, this will not be the last bailout of this sort.  From the linked article:

Citi and the US government made it clear that the Citi arrangement would be extended to other banks that pose risk to financial system stability, if need be. That is why the arrangement included broad swathes of Citi’s assets but was not tailor-made to suit Citi alone.

Anyone else think the other major banks aren’t going to line up, hands held out, asking for similar treatment?   This is particularly interesting coming right after Congress showed some spine and told the Detroit auto makers to get a valid plan in hand before coming back to ask for funding.  If there were any doubts about what the pecking order is with regards to who gets money from DC, this should help clear things up.

Looking at the largess being handed out right now, I can’t wait to see what kind of stimulus package will be delivered to Obama when he takes office in January.  Anything south of a trillion dollars or so won’t be seen as game-changing I’m thinking.

Advertisements

One Response to Citi Will Not be the Last Bank Bailed Out…

  1. Ramona says:

    Yep. I’ve found this so frustrating I’ve started a group on Facebook called “I’ve got a better bailout plan – let’s send every American a check for a million.” Might as well take out the middleman – if we’re going to be sending people at AIG on half-million dollar parties, I say let’s just skip them and bail out all of us individually. I can guarantee that if I got a check for even, say, $100,000, I’d be out stimulating the economy right nown!

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: