Friday, January 16, 2009
The End of an Era: Citi no Longer a Group
Nice move by the Treasury Department. $45 billion of taxpayer money into a company that is liquidating itself. Citi's last posted positive earnings for the 3rd quarter of 2007. Since then, 5 straight quarters of losses: roughly $30 billion down the drain.
On top of this, Bank of America gets another $20 billion in capital (bringing the total to $45 billion including Merrill's funds) and $118 billion in asset guarantees. I do NOT remember voting on this issue in November: backstopping Ken Lewis' stupidity and arrogance.
If I didn't know any better, I'd say they were operating this poorly on purpose.
Posted by MK at 8:20 AM