Looks like Citi is going down

From a story on Marketwatch.com: The Journal reported that under the terms being discussed, a large part of the $45 billion in preferred shares held by the government would convert into common stock. The government received those shares, equivalent to a 7.8% stake, in return for pouring capital into Citigroup. The move wouldn’t cost taxpayers […]

Financial plan won’t include “bad bank”

According to a report on Reuters, the new “TARP 2.0” bailout package won’t include a provision for a “bad bank”. A so called “bad bank” is an idea that has recently been floated.  In effect, the bad bank would buy up all the toxic crap from other banks, leaving them with nice clean balance sheets.  […]

Benanke is looking for a big rug

“Helicopter Ben” Benanke gave a speech yesterday (Jan 13th, 2009) at the London School of Economics. You can read the whole text of it here if you’d like. I’d like to comment on part of the speech near the end, where Bernanke says this:  Public purchases of troubled assets are one possibility.  Another is to […]