AMERICAblog: Citigroup received massive $300 billion last night from government
profmarcus
· 1 year ago
yeah, i think my original take on why the super-rich elites are so vehemently opposed to bailing out detroit turned out to be more than prescient... if the automakers are forced into bankruptcy, the first thing they will do is go in front of the bankruptcy judge and seek massive union concessions, amend contracts and generally toss the unions out on the street... the second thing they will do is to declare themselves unable to meet their pension liabilities and shove them over to the pension benefits guaranty corporation in yet ANOTHER taxpayer bailout... this entire scenario was written in first draft by ronald reagan when he broke the back of the air traffic controllers union, and was refined during the spate of airline bankruptcies following 9/11...
ask yourself, why is it so easy for citi to get a bailout and so hard for the automakers...? what other rational explanation is there...? what a crock o'shit... and, the crock overfloweth when you hear richard shelby, the senior repub senator on the banking committee say stuff like this: "I think a lot of it will be life support. believe their best option would be some type of Chapter 11 bankruptcy ... These leaders have been failures and they need to go."
why, i ask you, shouldn't the top management of citi ALSO have to go...? what, pray tell, is the difference between the super-rich elites who control the u.s. auto industry and the super-rich elites who run the banking industry...? the former has unions and the latter doesn't, that's what... if the automakers go bankrupt, those super-rich bastards calling the shots will still come out whole, the auto industry will still lumber along, but the back of the auto workers union will be broken which, after all, is the fundamental goal of this despicable continuing effort to pound the blue-collar american worker into senseless, silent, obedient servitude...
Nov. 24 (Bloomberg) -- General Motors Corp., in danger of running out of cash this year, will seek to negotiate a cut in debt levels and new union work rules to help boost its chances of winning federal loans, people familiar with the plan said.
The largest U.S. automaker also may ask to delay a $7 billion payment to a union retiree health fund, drop more brands and rework an accord with GMAC LLC to prove it can survive and repay the government, said the people, who asked not to be named because the details haven’t been presented to Congress.
(More at Bloomberg.com including discussion of retiree health benefits, job bank, and other union cuts, etc.)
therepguy
· 1 year ago
What slaves me the most is that the republican party in the name of bushism has piles this and a host other failures on the american people and they still have the balls to demand that they have a place at the table!
The hell with them now and in the foreseeable future!
Their brand of so called bushism is nothing more than fascism... something american needs none of!
therepguy
· 1 year ago
If the automakers are forced into bankruptcy... because of the republican's massive obstructionism the republican party can write off the average voter for the next 100 years or at least in my lifetime and the lifetime of my son!
paulbe
· 1 year ago
They don't have to write off Diebold. They don't need to concern themselves with how you vote. All of you need to get this over your threshold. Do you really think this change of Party in the Whitehouse will bring real change (that you can believe in?). It alternates between parties, but it no longer takes account of how you vote. Hasn't for some time now.
brian
· 1 year ago
Did they propose a plan like the Congressmen demanded from auto companies? The auto industry does need a plan, but so does the banking industry. I need to know where and how my $300 B is going to be used. And how are they ever going to pay that back to us?
RIPWAMU
· 1 year ago
This isn't being presented as a loan and it doesn't sound like we are getting any stock or whatever in them. Not only did the Big 3 request a LOAN not a bailout, they have offered whatever warrant stocks are requested. I am disgusted at what the Big 3 endured last week and how this Citigroup plan happened over the weekend with barely a blink of the eye.
Older_Wiser
· 1 year ago
Citi got $25 billion in October...right about the same time the Dems ran the famous "Barney Smith" commercial. Read the article cited.
And remember AIG? Worth 16 cents a share under govt supervision?
I suppose Tim Geithner approved this deal...
We are so fucked.
1970cs
· 1 year ago
Who gets the parts of Citi that are actually profitable, like the 'Wealth Management Division'?
The taxpayers are being forced to bail them out, and once again the losses are public and profits private.
paulbe
· 1 year ago
Citibank is dead in the water. America is dead in the water. The only question I have is: Was it incompetence, and if so, how much incompetence is needed before criminal negligence enters the debate? Or was it intentional? So much unpunished incompetence leads one to believe that what has happened was meant to happen. Bit like 911 really. So much unpunished incompetence....
RIPWAMU
· 1 year ago
I agree but I'm scared to write what charges I really think they should endure. Don't want to face the Patriot Act.
paulbe
· 1 year ago
perhaps we should just content ourselves with what punishments they deserve. I'm sure Wall Street has lots of sturdy light poles.
TomaHawk
· 1 year ago
Citbank is trying on its own to strengthen its position. This from a little note included with my last credit card statement:
"We are increasing your variable APR for purchases. Your purchase APR will equal the U.S. Prime Rate plus 13.99%, with a minimum APR of 19.99%. As of October 1, 2008, this purchase APR is 19.99%. ......"
This increases the APR on my account from 12.99% to 19.99%. Do you think they might be pissed because I have never carried over a balance from one month to another?
RIPWAMU
· 1 year ago
This is something else that must be addressed. Credit card companies should be disallowed to increase rates or cut credit lines until this mess is straigthened out. Especially on those who pay their bills each month. I had the money to pay down a few of my higher limit credit cards and I won't do it. I'm not going to have my limits slashed when I pay on time, more than the minimum each month.
AC_in_mich
· 1 year ago
So, Citibank gets TWELVE times what the Big three wants, with just a wink and a nod. Gee, in case of war, what exactly is Citibank going to do to "gear up" with manufacturing tanks, etc to rescue America? They gonna send the enemy a default notice?
Indigo
· 1 year ago
Puzzling.
managizzle
· 1 year ago
WTF? Another $320 Billion for a bank, but we can't loan the Big Three $25 billion?
RIPWAMU
· 1 year ago
300 billion to one company with no Congress hearings like the Big 3 went through last week? Seems a bit hmm, discriminatory - or is there a better word? This is disgusting to me. It is not going to save those 53000 job layoffs Citi announced last week. Of course, their jobs are nowhere near nor the economic impact nearly as emergent as the Big 3 but hey the Republicans and Paulson love banks and Wall Street. They have to save their buddies. They hate the Big 3 and Unions so too bad so sad millions of Americans and thousands of companies. You don't deserve to be saved. Wonder if the Citigroup elite has a corporate jet? Wonder if they would be willing to have a $1 salary? I'm thinking not. How much longer are we going to stand for this?
RIPWAMU
· 1 year ago
Also, where is this $300 coming from? Paulson last week said the original 700 was only going to be 350 and something like 290 had already been spoken for, leaving 60. That is what they said during the Big 3 hearings and Paulsons update or whatever you call it.
We are getting robbed blind by this administration in their final days. Perhaps every single American worker should do a one or two day walkout and grind the entire country to a halt.
RIPWAMU
· 1 year ago
I also think the consumer needs a guarantee from Citigroup that there will be no increase in fees for their customers for the next 5 years. A little thank you in essence.
dula
· 1 year ago
Where's the oversight from Dems...oh I forgot, I'm sure they are cowering in the corner fearing what Neocons are gonna say about them if they act.
tbhull
· 1 year ago
Taxpayers must now admit that they and their children are the slaves for the likes of Citigroup and AIG. My tax dollars, your tax dollars, the tax dollars of our children will be paying for these entities and the lavish salaries and benefits they have paid and continue to pay executives.
I propose DC be destroyed by a nationawide tax revolt. If Congress expects the taxpayers to toil away so that our dollars can be spent on this bullshit then the political careers of these bought and paid for assholes should be seen swinging from the trees of the Mall as DC crumbles. DC needs to be figuratively destroyed to its hopelessly corrupt core before any real, meaning and helpful change can occur.
For all of those not wishing to participate then remain on your knees and keep swallowing for your corporate masters which masters are probably not even your employer.
dula
· 1 year ago
Ditto...bring the country to a halt. Everybody just sit down in the middle of the road and do NOTHING...no work, no shop, no nothing
It is very frightening that Bush, Paulson and the rest of the crooks are still in power. They continue to thumb their noses at the taxpayers and do what they want. How can they be stopped?
MaryT
· 1 year ago
I have sympathy for people losing jobs, but no sympathy at all for Citigroup. I admit, it's personal. After I paid off and closed a card, they sued me, saying I'd never made a final payment. I found out later that they are known to be extremely litigious. Screw them I say.
KenD
· 1 year ago
Chris, The media did not hide the fact that Citigroup did not try to merge with Wachovia out of some kind of charitable feeling. The impetus behind the threatened lawsuit was that Citi really needed Wachovia. Wachovia had lots of domestic deposits (i.e. capital). Much of Citi's deposits are overseas. Those deposits are not insured by the FDIC or by whatever foreign depositor insurance fund there might be (see also the collapse of the Icelandic banks whose deposits were not insured). The lack of insured deposits meant a run on the bank, i.e. capital flight, destroying Citi's capitalization ratios....
movie fan
· 1 year ago
my initial thought upon hearing about Citibank's potential bankrupcy was, if Citi goes under, will that cancel out the (negative) small fortune I have stored up on my trusty Citi-card?
All Comments
ask yourself, why is it so easy for citi to get a bailout and so hard for the automakers...? what other rational explanation is there...? what a crock o'shit... and, the crock overfloweth when you hear richard shelby, the senior repub senator on the banking committee say stuff like this: "I think a lot of it will be life support. believe their best option would be some type of Chapter 11 bankruptcy ... These leaders have been failures and they need to go."
why, i ask you, shouldn't the top management of citi ALSO have to go...? what, pray tell, is the difference between the super-rich elites who control the u.s. auto industry and the super-rich elites who run the banking industry...? the former has unions and the latter doesn't, that's what... if the automakers go bankrupt, those super-rich bastards calling the shots will still come out whole, the auto industry will still lumber along, but the back of the auto workers union will be broken which, after all, is the fundamental goal of this despicable continuing effort to pound the blue-collar american worker into senseless, silent, obedient servitude...
http://takeitpersonally.blogspot.com/
The largest U.S. automaker also may ask to delay a $7 billion payment to a union retiree health fund, drop more brands and rework an accord with GMAC LLC to prove it can survive and repay the government, said the people, who asked not to be named because the details haven’t been presented to Congress.
(More at Bloomberg.com including discussion of retiree health benefits, job bank, and other union cuts, etc.)
The hell with them now and in the foreseeable future!
Their brand of so called bushism is nothing more than fascism... something american needs none of!
And remember AIG? Worth 16 cents a share under govt supervision?
I suppose Tim Geithner approved this deal...
We are so fucked.
The taxpayers are being forced to bail them out, and once again the losses are public and profits private.
"We are increasing your variable APR for purchases. Your purchase APR will equal the U.S. Prime Rate plus 13.99%, with a minimum APR of 19.99%. As of October 1, 2008, this purchase APR is 19.99%. ......"
This increases the APR on my account from 12.99% to 19.99%. Do you think they might be pissed because I have never carried over a balance from one month to another?
We are getting robbed blind by this administration in their final days. Perhaps every single American worker should do a one or two day walkout and grind the entire country to a halt.
I propose DC be destroyed by a nationawide tax revolt. If Congress expects the taxpayers to toil away so that our dollars can be spent on this bullshit then the political careers of these bought and paid for assholes should be seen swinging from the trees of the Mall as DC crumbles. DC needs to be figuratively destroyed to its hopelessly corrupt core before any real, meaning and helpful change can occur.
For all of those not wishing to participate then remain on your knees and keep swallowing for your corporate masters which masters are probably not even your employer.
http://bloomberg.com/apps/news?pid=20601109&sid...
How can they be stopped?
The media did not hide the fact that Citigroup did not try to merge with Wachovia out of some kind of charitable feeling. The impetus behind the threatened lawsuit was that Citi really needed Wachovia.
Wachovia had lots of domestic deposits (i.e. capital). Much of Citi's deposits are overseas. Those deposits are not insured by the FDIC or by whatever foreign depositor insurance fund there might be (see also the collapse of the Icelandic banks whose deposits were not insured). The lack of insured deposits meant a run on the bank, i.e. capital flight, destroying Citi's capitalization ratios....