More...
 

Big Citigroup Bail-Out Fund Already In Trouble

24/7 Wall Street   |  Douglas A. McIntyre   |   October 19, 2007 08:16 AM

Read More: Bail-Out Fund, Citicorp, Citigroup, Breaking Business News
stumbleupon :Big Citigroup Bail-Out Fund Already In Trouble   digg: Big Citigroup Bail-Out Fund Already In Trouble   reddit: Big Citigroup Bail-Out Fund Already In Trouble   del.icio.us: Big Citigroup Bail-Out Fund Already In Trouble

Several banks with troubled fixed income and mortgage securities are making the rounds to raise $80 billion to $100 billion to build a fund to buy some of this distressed debt. Citicorp (C) has the largest pool of these instruments, so it has the most to gain, or lose, if the fund has any problems.

Well, it appears that the work to build this pool of capital is already fraying at the edges.

According to The New York Times, the three big banks involved in the deal, Cit, BAC, and JP Morgan (JPM) are having trouble getting their ducks in a row. "All three banks agree on the concept but differ on the details. Other questions remain. How will the plan work? Who will participate? How much will its backers put in? "

Comments for this post are now closed

 
Comments
8
Pending Comments
0
iPhone App Promo

Want to reply to a comment? Hint: Click "Reply" at the bottom of the comment; after being approved your comment will appear directly underneath the comment you replied to

View Comments:
- realitytrumpsbull I'm a Fan of realitytrumpsbull permalink

Yaaaay, globalizationer....

    Favorite    Flag as abusive Posted 01:40 AM on 10/21/2007
- mmckinl I'm a Fan of mmckinl permalink

Lipstick on a pig.

The old shell game , played with increasing amounts of leveraged debt.

The face amounts on this are only a small percentage of the real losses as these SIVs are leveraged to the hilt , greater than 10 to 1.

    Favorite    Flag as abusive Posted 06:16 PM on 10/19/2007
- nomoredead I'm a Fan of nomoredead permalink

Wheres pajeff been?

    Favorite    Flag as abusive Posted 10:59 AM on 10/19/2007
- mrcontinental I'm a Fan of mrcontinental permalink
photo

You miss your pet troll? Now don't pull an Ellen De on us now.

He propably couldn't afford the internet bill this month is all. He'll be back, they always come back.

    Favorite    Flag as abusive Posted 12:30 PM on 10/19/2007
- mrcontinental I'm a Fan of mrcontinental permalink
photo

Their only concern is how much they can steal and get away with after the crash. The big three will feast on the others and carnage will be the result.

And this is only to recoup the money from their banking unit (your guaranteed deposits) that they gambled with and would otherwise have to eat themselves because FDIC says that you are protected up to $100,000 and they dipped deeper than they should have been allowed to into your savings and checking accounts.

    Favorite    Flag as abusive Posted 09:57 AM on 10/19/2007
- Sundialsvc4 I'm a Fan of Sundialsvc4 permalink

Why not, umm, re-negotiate the loans themselves?

Instead of continuing to "put the screws to" the hapless debtors, and borrowing more money from somewhere (i.e. the Fed) to bail yourselves out, why not alter the terms of the loans so that the debtors will not only be able to pay ... but might be happy enough to buy more loans from you in the future?

    Favorite    Flag as abusive Posted 09:22 AM on 10/19/2007
- nomoredead I'm a Fan of nomoredead permalink

Bingo...if the conservatives would quite using the words "bailout for the stupid " but help the people REFINANCE creatively so they could stay in their home, the banks would get repaid and the homeowners credit would be destroyed. It most be something much bigger than these forclosures causing all of this and WORLDWIDE !? cmon

    Favorite    Flag as abusive Posted 11:17 AM on 10/19/2007
- nomoredead I'm a Fan of nomoredead permalink

...correction "would NOT be destroyed..."

    Favorite    Flag as abusive Posted 12:16 PM on 10/19/2007
Comments are closed for this entry

You must be logged in to reply to this comment. Log in  or  Connect