Keith Olbermann, Special Comment on the Bankers, March 19, 2009 (Video)

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Citigroup on its way up?

Well, the CEO says for the last two months the bank has operated in a profit. Really? Does this mean the government money helped them? Or is this on their own, for real.

Call me skeptical. I want them to operate in the black, on the up and up, but as long as Citigroup has to take money from us and until they start to repay the money, my verdict is out on Citibank. In other words, they have bad assets on the books and will continue to need propping up.

Embattled Citigroup Inc. surprised Wall Street Tuesday with news that the bank company has operated at a profit in the first two months of the year. But despite the upbeat news, Congress and the Fed continue to review strategies for dealing with a further deterioration of the troubled global banking giant.

Citigroup CEO Vikram Vikram Pandit said late Monday in a memo to employees and clients that during the first two months of this year the bank had its best performance since the third quarter of 2007, when the credit crisis first triggered a wave of losses in the industry.

Pandit's memo said the company had generated $19 billion in revenues in January and February "excluding externally disclosed marks." A Citi spokesman said the company arrived at the profit figure by subtracting $8.1 billion in expenses for the two-month period, along with taxes and any one-time gains or losses. The spokesman did not provide details on those items.

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Stock Deals, for real.....

While the cable chatter, commentators, or as I call desk clerks continue to whine about Obama and spending, the stock market is chaotic.

One thing for sure, Citibank and Bank of America will be saved by the government. These banks are too large and too intertwined internationally for this government to let fail. Thus, purchasing their stock, right now, would be a shrewd investment.

Citigroup closed yesterday at $1.02; Bank of America at 3.17.

I know that much of the uncertainty with these bank stocks are raveled with the housing crisis, but if the government will not let these bank fail, if you have the cash, this stock would be a good purchase.

The banking giant Citigroup commanded a stock price of $55 just two years ago. But at one point Thursday, as markets hurtled to their lowest close in 12 years, the shares were worth less than an item at the Dollar Store.

[snip]

A share of General Motors stock, which fell below $2 on Thursday as it warned of possible bankruptcy, is now not even enough to buy a gallon of gasoline for your Chevy.

A share of General Electric, battered this week to little more than $6, would not be sufficient to buy two of the company’s compact fluorescent light bulbs. And at its current price of 73 cents, it would take several shares of Office Depot stock to buy a box of paper clips.

One caution, General Motors, I would let pass. I have written and with the rumors coming from GM itself that bankruptcy is eminent, the survival of this company is highly questionable right now. The government won't let all the American car companies fail, but they will let one go.

I believe it will be General Motors.

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New Citibank model may be the one moving forward for saving these financial industries

There is no doubt or question that this country is in uncharted waters.

Many blame the housing-mortgage mess for derailing this country financially. This is true in some part, but the players in the game are the ones to really be blamed. First, the government for not installing or in many cases removing regulations for the mortgage industry. The banks for using any and all loop holes in getting consumers mortgages, AT ANY COST OR RISK. The consumer for knowingly over-extending themselves with a mortgage or mortgages that they knew they could not afford. This vicious circle during the boom era made in the billions of money for this circle and they became drunk with greed. Now the grim reaper is upon us and it is pay time, only the cupboard is bare with time running out.

AIG now needs more infusion to the tune of 30B. This is on top of the record 150B that the government has given this insurance giant, most under the Bush Administration.

In November, the U.S. government restructured previous loans provided to AIG, giving the company about $150 billion in total as part of a rescue package to help the insurer remain in business amid the worsening credit crisis. That package replaced earlier loans, including the original $85 billion lent in September, after it became apparent the insurer needed more funds.

Problems at AIG did not come from its traditional insurance operations, but instead from its financial services units, and primarily its business insuring mortgage-backed securities and other risky debt against default.

As we see from above, AIG is not alone in the mortgage mess which has taken them financially; most of the financial industries with their hands out to us come from the same predicament. Their stock shares closed at .42 on Friday, which was worth $49.50 a year ago.

Now since we, the taxpayers have infused Citigroup with more money the government is playing a high wire act in hopes that this is the model going forward that works for the other financial industries lining up to receive government bailout.

It's the third time in five months the government has announced a major bailout for Citi, which has been struggling under the weight of losses tied to bad bets on mortgages, and it may not be the last. The government will swap the $25 billion in preferred stock from its earlier bailout money into common stock. This will boost the taxpayers' stake in Citi from 8 percent to 36 percent.

Similar rescue plans could be used at other ailing banks like Bank of America Corp. and Wells Fargo & Co. But analysts are skeptical of how effective they would be in the face of a weakened economy that will further depress the value of loans on the banks' books.

"Given how bad the economy is, there's no way on earth they won't see more of those loans go bad," said Dean Baker, co-director for the Center for Economic Policy and Research, a liberal think tank.

Douglas Elliott, a fellow at the Brookings Institution, said the government may take larger stakes in other troubled banks after regulators evaluate their balance sheets in coming weeks. Citigroup was in worse shape than its peers, he said, so the government will likely take smaller stakes in other banks.

36% is what we, the taxpayers own in Citigroup. It means that we are probably the largest shareholder in this bank.

Baker, of the Center for Economic Policy and Research, said the government's efforts to avoid a takeover amount to "a further handout to Citigroup."

"We really should own it outright," he said, given that taxpayers have provided the company $45 billion in assistance, several times its market value.

This is a high wire act saving the financial market, it is. I cannot sit back and say let the market correct itself. Citigroup, Bank of American and Wells Fargo are intertwined with toxic assets that are unmovable at this point. My feeling is to let these banks go down, but we are living in real time and if this happens it will have a roller ball effect not just in this country but worldwide. And for many with jobs, may not have them any longer since most companies and industries in this country works on credit.

I hate giving these banks a penny. Many of these lending institutions are biggest the snobs out there. Their only bottom line is and always has been making money, at any cost. Well, these guys and some gals were supposed to be the smartest of the smart and here we are with their companies run to ground due to greed. These companies did not see the bigger picture that their recklessness could not only cause havoc within their own bank but a counter effect worldwide. This is like the Bernie Madoff scandal. Madoff had his core group of investors but to keep the scam going he had to go broader, bring others into the group, until eventually it blew up in his face because he did not have enough money to cover everyone he owed.

This is the position of the banks.

I really hope this works, but my eye is crooked with skepticism. In real time, we can not save all these banks, but the major players must be saved to stabilize the financial market.

What a tangle web all this mess has weaved.

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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?

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Investors can not deal with the stock market any longer

“Many investors simply can’t contemplate any more stock market risk in their portfolios,” said Fritz Meyer, the Denver- based senior market strategist for Invesco Aim, which oversees $357 billion. “Sentiment in the market is very weak and negative.”

That sums it up quite well. The stock market, today, is hazardous for your financial health. Ask anyone in the market who have lost money and 401K holders who are moving their money OUT of these funds. Oh, the stock market fell to 1997 levels, today.

Reality Bites. It does. This is what the market is going through and what Americans have realized. We can finger point until the cows come home, but in the end many Americans have lost massive amounts of money on the market and with the continued uncertainty of the banks in this country and the continuing foreclosures in the 10s of thousands daily in this country, nothing is guaranteed any longer.

As long as the financial house is still reeling, why should Americans still throw money into a market that is also responsible for where this country is financially now? With all these ponzi schemes unfolding daily, many Americans are doubtful of these investment firms. These firms did not do their job in making sure these securities were sound. Instead these firms fell into the "good old rich boy network" on Wall Street and trusted a colleague like Bernie Madoff, who ended up being the biggest scam artist of them all and one who never purchased any securities for his clients. In other words, people's statements by these firms were filled with falsehoods, fairytales and lies.

President Obama has hard times and choices ahead. Former President Bush and the Republican Party drove us into a ditch with the Iraq War, spent us through the roof, and have borrowed trillions of dollars from our adversary, China. This country has not made anything of substance for years and unemployment numbers will be dismal for some time.

We now are looking at throwing more money into Citibank, with Bank of America on Citi's heels, AIG needs more money or they are going belly up, and we are bracing for the Housing Plan from the Obama Administration.

Many Americans are still willing to give Obama a chance; it has only been like 34 days. It took eight years of total fiscal mismanagement to put us where we are at. These problems did not just show up, it was there for everyone to see but the Bush White House refused until they had to face it. 10,000 homes have been foreclosing in this country since 2005 and the Bush Administration KNEW IT, but failed to do anything about it. It is easy to point fingers, but right now everyone's home in this country is not worth what they thought it was and many are paying more for a house that has vanished in equity.

I don't think all Republicans want Obama to fail. The failure of the Obama Administration is the failure of us all. It means the worst for this country. But the Republicans need to be for something and I mean for more than just tax cuts. I understand they are trying to take the moral fiscal ground, but their credibility is shot because it was the Republican Party that put us where we are at now. The word fiscal in reference to the Republican Party is laughable now. Instead of the constant bickering and fighting, the Republicans need to try to work with President Obama in good faith. This is not only what this country wants but needs desperately. Both sides in leadership for the good of the country. Until we can really do this, the continued postering and pandering for the cameras will continue until 2012.

Isn't Washington, D.C. just grand?

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More Bailout Money for Citigroup

Citibank. Bank of America is next.

I have been writing about these banks going down BEFORE they ran to Treasury and Hank Paulson last September. Remember? It was when John McCain took the infamous step to "suspend his campaign" for the good of the economy. And while taking the high road, McCain was laughed at in the end.

Now Citigroup needs more money. It is getting really tired and really old to continue to throw money at these financial institutions. I like many other millions of Americans are viewing this skeptically. Why? If we are going to be a capitalistic society, when managers make horrible decisions the end result is that the company goes under. This is applicable to these banks.

I have been tepid for saving these banks, but as my brother said last night, "...no we don't have to save them. They put themselves in this position...." Words did not ring truer.

Citigroup Inc. is in talks that could see the U.S. government take a bigger stake in the beleaguered bank, according to reports.

The Wall Street Journal said taxpayers could own as much as 40 percent of the ailing lender’s common stock. Citing sources familiar with the talks, the newspaper also said Citigroup executives hope discussions with U.S. officials will result in a government stake closer to 25 percent. The administration of President Barack Obama has not indicated whether it supports the plan, the report said.

A source familiar with the Citigroup situation told Reuters that talks were ongoing between the bank and regulators that could increase the government’s stake. The New York Times described the talks between Citigroup and U.S. regulators as “active.” read more here....

If we are owning 40% of Citibank, isn't this close to nationalization? And if so, why do we need stockholders who are benefiting from the influx of our cash? I have no problem with nationalization, with the understanding that the bank must work to get back on its feet, but let's not try to hide the real story here. WE, the taxpayers are keeping these banks afloat and since we are throwing more cash at these banks where is the money coming from? China, again?

Just open questions that need to be put on the table.

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Obama Tells Citigroup, "Get Rid of the 50M Private Jet!!"

As it should be.

These banks, financial institutions are just a TRIP!!! They don't get it. Here it is, we, the public, paying to save their A$$ES and their mindset is "financial 'rich' business as usual."

The high-flying execs at Citigroup caved under pressure from President Obama and decided today to abandon plans for a luxurious new $50 million corporate jet from France...

You think these rich, bigwigs wanted to get rid of the jet? Of course not, they don't give a mickey-fickey how the public feels about them. They are wayyyy up there and we are wayyyy down here. But when you are coming to Capitol Hill, with your hand out for TAXPAYERS MONEY, you bet your sweet A$$ES it matters how that money is spent.

ABC News has learned that Monday officials of the Obama administration called Citigroup about the company's new $50 million corporate jet and told execs to "fix it."

That is right, they fixed it by announcing they are not purchasing any jet.

Citigroup Inc , which received a massive taxpayer-funded rescue last year, canceled plans to buy a $50 million executive jet after news of the new plane drew rebukes from politicians.

The bank is under heavy pressure from regulators and elected officials after receiving $45 billion of capital from the U.S. government last year, including a $20 billion emergency infusion in November.

This goes back to why we should even bail these greedy businesses out. They are not loaning out money. They are giving each other huge bonuses in the millions. They are keeping in the same rich frame as 'rich business' as usual. If these institutions are doing all this, why give them any more money? Yes, I understand the rationale, but these institutions don't get it. They are not worried about losing a job, home, unable to pay bills, send kids to college, heathcare, food costs, etc. They don't get it because they are in the highest percentile in this country who will never have to worry about finances.

Uggggh....I can continue to rant, but why? Who is listening? More importantly, who cares!!!

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Citigroup Names NY Mets Stadium After Themselves While Begging For Bailout Money (Video)

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Bailing out Citigroup or Citibank or Citi, too

The bailout will never end.

These are the same greedy folks, who will turn their noses up to us in a hot minute, but need our tax payers money now.

Again, who is in charge of regulating this bailout money? It sure is easy to just give money the money away.

Citigroup executives presented a plan to federal officials on Friday evening after a weeklong plunge in the company’s share price threatened to engulf other big banks. In tense, around-the-clock negotiations that stretched through the weekend, it became clear that the crisis of confidence had to be defused now or the financial markets could plunge further.

Whether this latest rescue plan will help calm the markets is uncertain, given the stress in the financial system caused by losses at Citigroup and other banks. Each previous government effort initially seemed to reassure investors, leading to optimism that the banking system had steadied. But those hopes faded as the economic outlook worsened, raising worries that more bank loans were turning sour.

Yes, as I have been writing way back in the day, remember WAMU? I said, there were more to come, and Citibank is not the only bank who will be running to the Treasury Department with its hands out.

“It’s been one announcement after another that has had substance, but not enough teeth,” Charles R. Geisst, a financial historian and professor at Manhattan College. “By intervening, they are giving the market some heart to temporarily stave off some fear — but you can only push that so much.”

That is the major point.

This is just a temporary fix. Which means, the bleeding continues.

Read more, here.

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Citigroup to cut at least 50,000 jobs as the economy spiral downwards

This is bad. Really bad.

All weekend, the media has been atwitter with the rumor of enormous impending job cuts at Citigroup. This morning, Clusterstock reports that Citigroup has confirmed 50,000 job cuts:

Citi has confirmed the job cuts in a presentation (.pdf) post online. The presentation is actually a defense of the Citi business model, though it outlines the steps it has taken to shed legacy assets and bolster deposits.

But that news may not be the end of it. Some are speculating that the time is nearing for a Citigroup takeover or buyout.

Retail sales are down all over: Lowe's, Home Depot, Target, etc. And layaway plans, that most stores got rid of? It's backkkkkkk....



People with money are not spending it and those in financial crisis is just another small kink in the melting armour.

We have passed a recession folks, this is moving to a depression. We now have Philadelphia asking for bailout money and if we think this is the only city, THINK AGAIN.

As food prices soar, when things get tight the processed food, Spam benefits.

The economy is in tatters and, for millions of people, the future is uncertain. But for some employees at the Hormel Foods Corporation plant here, times have never been better. They are working at a furious pace and piling up all the overtime they want.

The workers make Spam, perhaps the emblematic hard-times food in the American pantry.

Through war and recession, Americans have turned to the glistening canned product from Hormel as a way to save money while still putting something that resembles meat on the table. Now, in a sign of the times, it is happening again, and Hormel is cranking out as much Spam as its workers can produce.

In a factory that abuts Interstate 90, two shifts of workers have been making Spam seven days a week since July, and they have been told that the relentless work schedule will continue indefinitely.

Spam, a gelatinous 12-ounce rectangle of spiced ham and pork, may be among the world’s most maligned foods, dismissed as inedible by food elites and skewered by comedians who have offered smart-alecky theories on its name (one G-rated example: Something Posing As Meat).

But these days, consumers are rediscovering relatively cheap foods, Spam among them. A 12-ounce can of Spam, marketed as “Crazy Tasty,” costs about $2.40. “People are realizing it’s not that bad a product,” said Dan Johnson, 55, who operates a 70-foot-high Spam oven.

Yep, Spam benefits when the pocketbook and wallet is very light.

As for Detroit and the Big 3 automakers? Don't expect any bailout from the lame duck congress, this is being thrown into President Obama's lap after January 20, 2009.

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