CITI WILL NEVER STOP ASKING FOR YOUR MONEY. EVER.
Citi never sleeps and never gets tired of your money. EVER.
Here's the tally so far: $25 billion in late october with the first installment of TARP, and then a sweetheart deal announced around Thanksgiving that gave Citi $20 billion in new cash plus a 91% government backstop on a toxic $309 billion portfolio. Nice folks, the taxpayers. We're suckers, actually. In return for our gift we received warrants and preferreds worth approxiamtely $27 billion. Excellent work, men and women of the US Treasury. This deal was finalized New Years Eve and here are the gory details.
Now it's getting dicey again as Citi's stock has begun showing signs of intense stress as it hovers just above $5. Their Credit Default Swaps have spiked recently and there is renewed concern about large, future losses. Readers likely don't need any lessons on Citi's problems, but here, here and hereare 3 outstanding write-ups on Citi's DTAs, deferred tax assets. The sources are Bloomberg, Option Armageddon and the FT. Be forewarned, it's not pretty, unless of course you already knew that Citi's true leverage (with worthless DTAs subtracted) is 280X Tier 1 Capital. Ouch...Double Ouch.
After reading you will likely wonder again why we are even trying to save Citi. Have we not learned anything from our experience with AIG's bottomless black hole. Tim Geithner, are you listening? Are you still unaware that the voters overwhelmingly oppose these bailouts, especially that of Citi, perhaps the most unpopular of all the behemoths? In the name of Thomas Jefferson, when sir will you and Kashkari and Paulson stop your assault on the American Taxpayer. We have had more than enough of these handouts.
Thomas Jefferson in a Letter to the Secretary of the Treasury Albert Gallatin in 1787 :
"I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs. "
Jan 14, 2009 at 12:11 AM
Reader Comments (5)
nice of everyone to stop by and big thanks to those who have already posted below...i've had about 150 different people pay a visit today, and that was from just mentioning the site in 2 posts in the comments section on clusterstock...the post was henry's first take on the BAC bailout part deux...
the site is definitely not ready yet and while scrambling to make it so, i realized that i have no choice but to go ahead and soft-launch it now...so, soon the site will be reachable at www.dailybail.com or just dailybail.com...
the .squarespace tag will drop off...it will slowly gain a more professional look...
the content is what matters and it dictates that i start NOW...this entire week and likely all of next week are going to be very content rich ...and with so much happening each day, it would be a mistake, i think, to allow the inconvenience of an un-finished site to stop me from doing what needs to be done...and that, simply is to provide a news aggregation source for all stories related in any way to this messed-up, painfully inept and completely counter-productive bailout of failed people, businesses, municipalities, states and ultimately as all of us here know, our federal government...
it's gonna be a painful journey on a path to hell...but with your help we can keep each other company while we fight like crazy to wake up our fellow taxpayers to the great fleecing that is now, deeply upon us...
huge thanks to anyone who stops by during this soft launch period...and it would be great if you posted your thoughts on a story or just the bailout in general...
we love rants and all people who make them...show us what you got...
thanks a ton, DailyBail
The Thomas Jefferson Quote is not totally accurate.
See this link about that Quote:
http://wiki.monticello.org/mediawiki/index.php/Private_Banks_(Quotation)
I just wasn't firsty enough.
SPODE
appreciate the heads up on the quote...
my undergrad is from UVa so i've been misquoting jefferson for years now...
both accidentally and, well,on purpose...
i have always liked his comments on bankers...you can tell he was not a fan...
jefferson would make a great bailout blogger i imagine...
his anger would bleed from every page...
I just found your site through TechCrunch. Someone mentioned it in the comments section of an iphone story. I like that you have no advertising.
I am a single mother with 2 young sons and I work in the tech industry in california. Our state is facing a large budget shortfall this year and we have been asking Washington to bail us out and I think it's wrong. The politicians in our state would rather look to Washington to cover our budget shortfall than actually look at the reasons for our shortfall. Yes, revenues are down this year becaue of the slowdown, but the true issue is bloated stae budgets, and health care and pension benefits that have been promised to public workers.
In vallejo which filed for bakruptcy in 2008, there were 42 police and firefighters earning in excess of $200k per year. For public employees, this is unreal. And these employees will receive 90% of their salary in the form of a pension for every year for the rest of their lives. And we, the taxpayers of california have to pay for their excesssice packages.