U.S. Government to bail-out Citi
Per CNN:
Treasurys fell Monday as investors’ fears of a Citigroup collapse were allayed over the weekend, when the government agreed to rescue the embattled bank.
The Treasury and FDIC said Sunday they will guarantee losses on more than $300 billion of Citi’s (C, Fortune 500) troubled assets, and the Treasury will also make another $20 billion investment in the bank – on top of a previous $25 billion capital injection.
Investors feared that the bank’s collapse could leave the financial market in tatters, just as Lehman Brothers’ bankruptcy did in mid-September. Anxiety about the volatile state of the economy and markets sent Treasury yields to all-time lows Thursday.
But investors found a renewed confidence Monday. President-elect Barack Obama is expected to announce his economic advisory team late Monday morning. The reports that Obama picked New York Fed President Timothy Geithner to step in as the next Secretary of the Treasury and former Treasury Secretary Lawrence Summers as his chief economic advisor improved sentiment in among investors.
People had been eagerly awaiting Obama’s choice to lead the country out of a recession and market turmoil.
I wonder who is next in line to get a little “help“? Again, I don’t have a better solution. Do you?
Lots of good opinions on the bailout here.
