U.S. Weighs Further Steps For Citi

Wall Street Journal:

Barely a week after the third rescue of Citigroup Inc., U.S. officials are examining what fresh steps they might need to take to stabilize the bank if its problems mount, according to people familiar with the matter.

Federal officials describe the discussions, which are wide-ranging and preliminary, as "contingency planning." Regulators are trying to ensure that they are prepared if Citigroup takes a sudden turn for the worse, which they aren't expecting, these people say.

Read the whole story: Wall Street Journal

Comments

[SammyD]

last week it was nationalize the banks! the sky is falling. This week it's Citi made a profit. You've been duped Americans so get back to work and pay those taxes. You should be able to clear the deficit in 2 generations. Unless, you keep electing us and then we'll just keep charging.

[wdw505]

well said

[atreidesstorm]

I do wonder what the breakdown of those profits are. So far, it's been a little vague where the US$19 billion is coming from.

[tommytoons]

Stock worth only a $1.05? That tells me that investors know something that appears the government does not know or realize. Let Citi fail.

[wdw505]

agreed

[go4thegold]

Hmm. Citi posts a profit. Are they planning on paying back any of their borrowed gains? The profit, I suspect, isn't a profit at all, but posting of the money the US government gave them as a bailout. Tricky accounting practices. We'll know for sure if the market drops 250 or more tomorrow. Then we'll know it was a set up to profit on selloffs. D.

[atreidesstorm]

Hopefully not, but given how vague the announcement seemed to be . . . One can't be too careful . . .

[LCLiberal]

It'll be hard to generate support for more Citi bailouts/n­ationaliza­tion when they';re turning profits for the first two months of '09...

http://www.political-buzz.com/

[lvdragonlady]

They outsource jobs Americans need to India. They should not get ****.

[SurrealPumpkin]

ENOUGH!

Citbank, Wells Fargo, AIG, BoA and the rest of you. Stop sitting around on your welfare lard butts and start doing something. What suggestions do you have to get yourselves out of trouble? What are you willing to give up in order to get up?

I'm tired of hearing Wall Street whimper for the Government to make things better immediately when there is no indication whatsoever that Wall Street is a willing participant.

NEWS FLASH: Wall Street - you are not the center of the universe. "There's no such thing as a free lunch", remember that? "I did it without any handouts from anyone", remember that? "Business knows better then government", remember that?

Shut up and put up. I want plans from all of you, along the lines of the plans demanded of the Auto Companies. What is your situation now. Feel free to include the bits you have no way to measure*. What can you do now to improve the situation. Do it. We, the taxpayers, have more then enough to get ourselves out of this mess. Start cooperating in your own health plan or fade away.

*nwm - the new accounting entity to be used when it isn't possible to provide a numerical value because the financial practices were so evolved they were beyond anyone's comprehension.

[novowel4me]

I'd also like to hear their plan on how to tie executive compensation to achievement of quantifiable long term performance.

[wayoutleft]

congress is at a fork in the road- a rubicon. a big decision looms: should we give them more money? or should we give them a whole lot more money. the economy of the world hangs in the balance.

[BigIronMike]

Get rid of the CEO and his arrogance.

[StephenBarry]

Why does Pandit still have a job ? Are we saying that no one else on their management bench could do better ? What a malicious joke.

[familydamato]

Stop the taxpayer bailouts – encourage individual investors to pump cash into the economy!

Let the American middle class invest in AMERICA! Encourage Americans to use their retirement funds to buy autos made in America and foreclosed homes. As an incentive and to make up some of their Wall Street losses, do not tax these retirement funds.
Instead of our country going further into debt, why not encourage Americans who are 50 or over to buy autos made in the USA? Set a cap of $35,000 tax free for autos. For foreclosures, set a cap of $450,000 and requirement that the home must be kept 3 years (to avoid flipping).

The only requirement for using tax free retirement savings to purchase autos and foreclosures?
MUST PAY IN CASH - NO LOANS – NO MORGAGES – NO FOREIGN DEBT!
Within 12 months, the financial crisis would be over, our retirees would recoup some of their Wall Street losses and we keep our capitalist system.
Benefits include:
1. Vacant foreclosures disappear.
2. Banks get cash for these foreclosures (a/k/a toxic assets) and can extend consumer credit.
3. The auto industry receives much needed cash and becomes solvent.
4. Neighborhood blight decreases as previously vacant homes are repaired and maintained. The building tradesmen are kept working.
5. Home values increase.
6. Consumer confidence increases and our economy grows.
7. The United States does not have to take on more foreign debt.
8. Taxpayers do not have to absorb the cost of borrowing.

[SurrealPumpkin]

The biggest joke played on Middle Class Americans is the 401K. It gives us the illusion that we are investors and that what is good for the stock market is good for us. Unless you have several million in your 401K you are a bit player.

ps, what's your retirement package worth now? Could you really buy a house? a car?

[wdw505]

my retirement is just fine......­...i and most of my EMPs reallocated the funds to the cash side of the 401k on 11/11/2008­.......the day after 2 banks collapsed over the weekend...­.......now my EMPs are very happy with me........­.they are waiting for me to tell them i am getting back in and they will too.......­.a very cheap EMP benefit...­....only cost me 1 day for 2 EMPs to help everyone login and change the allocation

that day had to scare the fund managers..­........ab­out 75% of my EMPs did the move......­.

are you not capable of logging in moving funds.....­.a 401k is not managed without your input

[sposton]

Why is this guy in charge of Citi? If he and others like him can stay I want Paulson back, too! (not that Geithner is much different) Why not bring back Bush and Cheney? ;-)

[DrVeruju]

Another view regarding Citibank here

http://www.worldreports.org/news/200_queens_52_billion_stolen_under_obamas_regime

[novowel4me]

At first glance this site does not appear to be a reliable news source. Perhaps you could tell us something about it's origin a ownership?

[SurrealPumpkin]

The extravagant use of the caps lock key should be a clue to the site's reliability. I think I'll run a virus scan just to be safe.

[mjb5406]

Three little words: Let them fail.

[Savanna]

Who owned Citi Corp before this crisis began?

[Sundialsvc4]

This bank is insolvent.

Do what the law requires.