{"id":1049,"date":"2008-11-24T10:25:51","date_gmt":"2008-11-24T15:25:51","guid":{"rendered":"http:\/\/www.jasetaro.com\/blog\/?p=1049"},"modified":"2008-11-24T10:25:51","modified_gmt":"2008-11-24T15:25:51","slug":"here-we-go-again-feds-agree-to-citibank-bailout","status":"publish","type":"post","link":"https:\/\/www.jasetaro.com\/blog\/2008\/11\/24\/here-we-go-again-feds-agree-to-citibank-bailout\/","title":{"rendered":"Here We Go Again: Feds Agree to Citibank Bailout"},"content":{"rendered":"

From the Wall Street Journal<\/a>:<\/p>\n

The federal government agreed Sunday to take unprecedented steps to stabilize Citigroup by moving to guarantee close to $300 billion in troubled assets weighing on the bank’s books.<\/p>\n

Treasury has agreed to inject an additional $20 billion in capital into Citigroup under terms of the deal hashed out between the bank, the Treasury Department, the Federal Reserve and the Federal Deposit Insurance Corp. Treasury officials will charge a higher interest rate for the capital injection — 8% for the first few years — than it has charged to dozens of other banks now borrowing money under the government’s the $700 billion rescue package approved by Congress last month.<\/p><\/blockquote>\n

Here’s my prediction: It’s not going to work…\u00a0 Sure it’ll make everyone feel good and stocks will rise in the short term but once the euphoria wears off and reality sinks in we’ll be right back where we started.<\/p>\n

Michelle Malkin says<\/a>:<\/p>\n

Crap Sandwich 2.0 is morphing again.<\/p>\n

We\u2019ve gone from the toxic assets purchase plan to the capital injection plan to the throw-it-all-against-the-wall-and-whatever-the-hell-sticks-sticks non-plan plan.<\/p><\/blockquote>\n

And there in lies the problem, at least from my perspective… We rushed into this bailout business without really understanding the full scope of the problem and are now groping around in the dark trying to find a way out.<\/p>\n","protected":false},"excerpt":{"rendered":"

From the Wall Street Journal: The federal government agreed Sunday to take unprecedented steps to stabilize Citigroup by moving to guarantee close to $300 billion in troubled assets weighing on the bank’s books. Treasury has agreed to inject an additional $20 billion in capital into Citigroup under terms of the deal hashed out between the […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[26,20,7],"tags":[166,342,344,343,177],"class_list":["post-1049","post","type-post","status-publish","format-standard","category-economy","category-money-and-investing","category-politics","tag-bailout","tag-citigroup","tag-fdic","tag-federal-reserve","tag-treasury-department","entry"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/pfpI7-gV","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":2091,"url":"https:\/\/www.jasetaro.com\/blog\/2009\/04\/27\/tarp-price-tag-could-reach-29-trillion\/","url_meta":{"origin":1049,"position":0},"title":"TARP Price Tag Could Reach $2.9 Trillion?","author":"Jeff","date":"April 27, 2009","format":false,"excerpt":"CNSNews has a rather frightening report on the Special Inspector General for the Troubled Asset Relief Program's report to congress. In short the report says that although Congress limited the Treasury Dept. to spending only $700 billion on TARP\u00a0 the program's partnerships with the Federal Reserve and the Federal Deposit\u2026","rel":"","context":"In "Economy"","block_context":{"text":"Economy","link":"https:\/\/www.jasetaro.com\/blog\/category\/economy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":3151,"url":"https:\/\/www.jasetaro.com\/blog\/2010\/01\/07\/bloomberg-geithners-fed-told-aig-to-limit-swaps-disclosure\/","url_meta":{"origin":1049,"position":1},"title":"Bloomberg: Geithner’s Fed Told AIG to Limit Swaps Disclosure","author":"Jeff","date":"January 7, 2010","format":false,"excerpt":"In a sane world Tim Geithner's tax troubles would have kept him from being confirmed as Treasury Secretary. Unfortunately, we don't live sane and those tax troubles pale in comparison to what we're learning about the Geithner led Federal Reserve Bank of New York's role in the AIG bailout: The\u2026","rel":"","context":"In "Culture of Corruption"","block_context":{"text":"Culture of Corruption","link":"https:\/\/www.jasetaro.com\/blog\/category\/culture-of-corruption\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1051,"url":"https:\/\/www.jasetaro.com\/blog\/2008\/11\/24\/creeping-socialism-bush-defends-citigroup-bailout\/","url_meta":{"origin":1049,"position":2},"title":"Creeping Socialism: Bush Defends Citigroup Bailout","author":"Jeff","date":"November 24, 2008","format":false,"excerpt":"I'm at a loss for words here... From the AP via Michelle Malkin: President Bush argued Monday that the government\u2019s dramatic rescue of Citigroup was necessary to \u201csafeguard the financial system\u201d and help the economy recover, and he said there could be more such moves if other institutions need help.\u2026","rel":"","context":"In "Economy"","block_context":{"text":"Economy","link":"https:\/\/www.jasetaro.com\/blog\/category\/economy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1853,"url":"https:\/\/www.jasetaro.com\/blog\/2009\/04\/01\/holy-crap-128-trillion-spent-lent-or-committed\/","url_meta":{"origin":1049,"position":3},"title":"Holy Crap: $12.8 Trillion Spent, Lent or Committed???","author":"Jeff","date":"April 1, 2009","format":false,"excerpt":"From Bloomberg News: March 31 (Bloomberg) -- The U.S. government and the Federal Reserve have spent, lent or committed $12.8 trillion, an amount that approaches the value of everything produced in the country last year, to stem the longest recession since the 1930s. New pledges from the Fed, the Treasury\u2026","rel":"","context":"In "Economy"","block_context":{"text":"Economy","link":"https:\/\/www.jasetaro.com\/blog\/category\/economy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1141,"url":"https:\/\/www.jasetaro.com\/blog\/2008\/12\/19\/son-of-a-bailout-bush-gives-auto-makers-174-billion\/","url_meta":{"origin":1049,"position":4},"title":"Son of a Bailout – Bush Gives Auto Makers $17.4 Billion","author":"Jeff","date":"December 19, 2008","format":false,"excerpt":"President Bush this morning morning announced a $17.4 billion bailout plan for auto makers. Under the terms of the plan GM and Chrysler would receive $13.4 billion in loans in December and January, with another $4 billion likely available in February. 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Geithner is set\u2026","rel":"","context":"In "Economy"","block_context":{"text":"Economy","link":"https:\/\/www.jasetaro.com\/blog\/category\/economy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/www.jasetaro.com\/blog\/wp-json\/wp\/v2\/posts\/1049","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.jasetaro.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.jasetaro.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.jasetaro.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.jasetaro.com\/blog\/wp-json\/wp\/v2\/comments?post=1049"}],"version-history":[{"count":0,"href":"https:\/\/www.jasetaro.com\/blog\/wp-json\/wp\/v2\/posts\/1049\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.jasetaro.com\/blog\/wp-json\/wp\/v2\/media?parent=1049"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.jasetaro.com\/blog\/wp-json\/wp\/v2\/categories?post=1049"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.jasetaro.com\/blog\/wp-json\/wp\/v2\/tags?post=1049"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}