The newest winner in the U.S. Government's Bailout Sweepstakes is Citigroup. The bank and federal regulators hammered out a deal that will back loans and securities to the tune of $306 billion and putting another $20 billion directly into the company. Under the deal, the U.S. Government will buy 254 million shares at $10.61 each, which could generate a profit if Citigroup's stocks ever go up again. Now the $64,000 question is why Citigroup and not the Big 3 auto makers? Good question, and some are mulling that one over. Detroit just didn't have a winning entry in this gameshow.
Monday, November 24, 2008
Citigroup, come on down!
The newest winner in the U.S. Government's Bailout Sweepstakes is Citigroup. The bank and federal regulators hammered out a deal that will back loans and securities to the tune of $306 billion and putting another $20 billion directly into the company. Under the deal, the U.S. Government will buy 254 million shares at $10.61 each, which could generate a profit if Citigroup's stocks ever go up again. Now the $64,000 question is why Citigroup and not the Big 3 auto makers? Good question, and some are mulling that one over. Detroit just didn't have a winning entry in this gameshow.
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