Government reportedly involved in Citi deal

[jdobbin]

http://www.msnbc.msn.com/id/27877195/

The government was weighing a plan on Sunday to rescue Citigroup Inc., whose stock has been hammered on worries about its financial health.

The Treasury Department and the Federal Reserve have been in discussions over the weekend to devise a strategy to stabilize the company, according to people familiar with the talks. They spoke on condition of anonymity because the discussions were ongoing.

Looks like more money will be plowed out the door to keep Citibank from failing.

[jdobbin]

Well, here is how the deal lines up:

http://www.msnbc.msn.com/id/27877195/

The government unveiled a bold plan Sunday to rescue troubled Citigroup, including taking a $20 billion stake in the firm as well as guaranteeing hundreds of billions of dollars in risky assets.

The action, announced jointly by the Treasury Department, the Federal Reserve and the Federal Deposit Insurance Corp., is aimed at shoring up a huge financial institution whose collapse would wreak havoc on the already crippled financial system and the U.S. economy.

Who'd of thunk? Nationalizing the second largest bank?

[Liam]

I think everyone now recognizes it was a mistake to let Lehman implode. Many people think Lehman's failure caused the current crisis to get worse. Citi is no different (same with the car manufacturers): letting it fail will have enormous implications for the larger economy.

[guyser]

I think everyone now recognizes it was a mistake to let Lehman implode.

it seems so.

[Shady]

I think everyone now recognizes it was a mistake to let Lehman implode.

Forsure. However, I've read that it may have been over personal reasons for Paulson, and not so much related to policy.

[bush_cheney2004]

I think everyone now recognizes it was a mistake to let Lehman implode. Many people think Lehman's failure caused the current crisis to get worse. Citi is no different (same with the car manufacturers): letting it fail will have enormous implications for the larger economy.

Interesting choice of words...."letting it fail"...when it was clear it would fail all by itself.

[GostHacked]

Interesting choice of words...."letting it fail"...when it was clear it would fail all by itself.

Let it fail all by itself then.