Quote:
Originally Posted by Thurbs
well if Citi has the capital, better than a bail out? or am I mistaken?
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It's a bail out! You now own Citi Stock, and you didn't have to buy it like I did.
Citigroup will absorb up to $42 billion of losses on Wachovia's $312 billion pool of loans ? but the Federal Deposit Insurance Corporation will absorb losses beyond that.
In return, the banking giant has given the FDIC $12 billion in preferred stock and warrants as compensation.
So now every american owns Citi.
Bank of America, JPMorgan Chase and Citigroup would control more than 30 percent of the industry's deposits.
Bofa and Chase, are not owned by the FEDs.