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.

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