24/7 Wall St.
11-24-2008, 04:43 AM
24/7 Wall St. Daily News
http://www.247wallst.com/images/2008/11/24/data.jpg</img> (http://247wallstreet.typepad.com/.shared/image.html?/photos/uncategorized/2008/11/24/data.jpg)One size does not fit all. Citigroup (C) will get a bailout which does not look anything like the deal the government has made with other large banks under the $700 billion Paulson program. It also has little in common with the transactions cobbled together to save AIG (AIG).
According to an FDIC, Treasury, and Fed statement:
As part of the agreement, Treasury and the Federal Deposit
Insurance Corporation will provide protection against the
possibility of unusually large losses on an asset pool of
approximately $306 billion of loans and securities backed by
residential and commercial real estate and other such assets,
which will remain on Citigroup's balance sheet. As a fee for
this arrangement, Citigroup will issue preferred shares to the
Treasury and FDIC. In addition and if necessary, the Federal
Reserve stands ready to backstop residual risk in the asset
pool through a non-recourse loan.
In addition, Treasury will invest $20 billion in Citigroup
from the Troubled Asset Relief Program in exchange for
preferred stock with an 8% dividend to the Treasury. Citigroup
will comply with enhanced executive compensation restrictions
and implement the FDIC's mortgage modification program.
Douglas A. McIntyre.
http://feeds.feedburner.com/~f/typepad/RyNm?i=qugRN</img> (http://feeds.feedburner.com/~f/typepad/RyNm?a=qugRN) http://feeds.feedburner.com/~f/typepad/RyNm?i=sBLcN</img> (http://feeds.feedburner.com/~f/typepad/RyNm?a=sBLcN) http://feeds.feedburner.com/~f/typepad/RyNm?i=mTFGn</img> (http://feeds.feedburner.com/~f/typepad/RyNm?a=mTFGn)
complete story here... (http://www.247wallst.com/2008/11/citigroup-c-get.html)
http://www.247wallst.com/images/2008/11/24/data.jpg</img> (http://247wallstreet.typepad.com/.shared/image.html?/photos/uncategorized/2008/11/24/data.jpg)One size does not fit all. Citigroup (C) will get a bailout which does not look anything like the deal the government has made with other large banks under the $700 billion Paulson program. It also has little in common with the transactions cobbled together to save AIG (AIG).
According to an FDIC, Treasury, and Fed statement:
As part of the agreement, Treasury and the Federal Deposit
Insurance Corporation will provide protection against the
possibility of unusually large losses on an asset pool of
approximately $306 billion of loans and securities backed by
residential and commercial real estate and other such assets,
which will remain on Citigroup's balance sheet. As a fee for
this arrangement, Citigroup will issue preferred shares to the
Treasury and FDIC. In addition and if necessary, the Federal
Reserve stands ready to backstop residual risk in the asset
pool through a non-recourse loan.
In addition, Treasury will invest $20 billion in Citigroup
from the Troubled Asset Relief Program in exchange for
preferred stock with an 8% dividend to the Treasury. Citigroup
will comply with enhanced executive compensation restrictions
and implement the FDIC's mortgage modification program.
Douglas A. McIntyre.
http://feeds.feedburner.com/~f/typepad/RyNm?i=qugRN</img> (http://feeds.feedburner.com/~f/typepad/RyNm?a=qugRN) http://feeds.feedburner.com/~f/typepad/RyNm?i=sBLcN</img> (http://feeds.feedburner.com/~f/typepad/RyNm?a=sBLcN) http://feeds.feedburner.com/~f/typepad/RyNm?i=mTFGn</img> (http://feeds.feedburner.com/~f/typepad/RyNm?a=mTFGn)
complete story here... (http://www.247wallst.com/2008/11/citigroup-c-get.html)