The government is looking to buy substantial amount of assets from Citi
like a good bank, bad bank structure. The Government will absorb much
of the losses for Citi if there are losses and Citi would issue
preferred stock to the government. The government could buy more than
$100 billion in the bad assets if the plans go through.
Here is more. Didn’t Paulson tell us just a few days ago that TARP wasn’t needed after all?
Doesn’t this mean that Paulson should speak less frequently?
Hey, I thought Citi WAS the bad bank!
Addendum: Read this lovely update!