Citigroup Inc. and U.S. regulators are in talks to limit the bank’s potential losses on more than $100 billion of toxic assets after the stock’s plunge last week sparked concerns about the company’s fate, four people familiar with the matter said..
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The holdings that may be guaranteed are a portion of the $400 billion pile of mortgages, bonds, auto loans and corporate loans that Chief Executive Officer Vikram Pandit pledged in May to shed within three years, the two people said. While the amount to be covered under the plan is under discussion, the talks are focused on about $100 billion to $200 billion of the assets, they said.
“If anybody’s too big to fail from the financial system’s point of view, it’s Citi,” said Brian Barish, president of Cambiar Investments LLC in Denver, which manages about $6 billion and doesn’t own Citigroup stock. “The government doesn’t need to be in this to make money. If they lose a few bucks on this, but save the system, it’ll be worth it.”
I'd bet the fix was always in for the big three getting their cash. But if the Fed is going to save Citi to the tune of over a hundred billion in loans/guarantees/what have you - they'd be hard pressed to justify not throwing a measly 25 billion to some automakers.
I mean, at this point - $25 billion dollars is chump change.
2 comments:
Come mr. tally man tally me banana, republic a going and a going real fast. one tril, two tril, three tril gone!, republic a going and a going real fast.
Day-O!
You s'pose the banana fields are hiring? Have you heard anything? Have any contacts?
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