Friday, February 27, 2009

Citigroup needs more money from the government

This huge organization has been hit hard by greed and the collapse of the housing market. Of course it will have to go under a stress test, which it will FAIL, let's be honest here it will, but it will be given more money thrown at its bad debt.

Eventually, how much longer will this go on before this bank collapse? We can't save them all.

The government is on the verge of closing a deal to significantly boost its ownership stake in Citigroup. In return, it will demand changes be made on the troubled banking giant's board and other conditions, according to a person with knowledge of the discussions.

The increased stake in Citigroup Inc. will not require additional money from taxpayers and the bank will still have to undergo a "stress test," such as those that banking regulators started conducting this week on the nation's biggest banks, said the source, who spoke on condition of anonymity because a deal hasn't been officially announced.

And when you want bad news to cycle fast through the news, you dump it on Friday.

Again, we must shore up our financial market but for any of us to think Citigroup is the only major bank out there teetering, then you must not have heard of another giant, Bank of America or AIG. Will it ever end? That is China continuing to own this country by paying for this crisis?