Category Archives: bank bailout
Since that part of the financial sector is booming, I am glad the Govt is cashing out. From Bloomberg:
The Treasury said it disposed of 2.4 billion shares at $4.35 each, compared with yesterday’s closing price of $4.45 on the New York Stock Exchange. The sale raises the profit for taxpayers on the rescue to about $12 billion, including the share gain, dividends and proceeds from other securities.
The sale helps Citigroup exit the 2008 bailout, which was provided to keep the New York-based bank from collapsing as its stock sank below $5 and some depositors started withdrawing their money. Citigroup also had to get $301 billion of government guarantees on its riskiest assets, making the bailout the biggest among U.S. banks.
The Treasury said its average price for selling 7.7 billion Citigroup shares was $4.14. The government acquired the shares at a conversion price of $3.25. The share increase produced a gain of about $6.85 billion.
The U.S. has been winding down bank-bailout and emergency- lending programs while trying to recoup the money it provided to bolster private companies including General Motors Co. and American International Group Inc.
The Treasury received $13.6 billion from last month’s initial public stock offering by Detroit-based General Motors, and still holds about 33 percent of the automaker. The government said in September it plans to convert $49.1 billion of AIG preferred shares into common stock that would eventually be sold in the open market.
This still doesn’t make it right, bailing out the big banks. There are still small banks failing every month because they didn’t get a bailout. I had no problem w/bailing out the automakers….because those fuckers actually ‘make’ something.
Mainstreet is still in the shitter however. The Govt should take the bailout profits and pour them back into stimulus…like saving the 99ers, just for fucking starters.
But they won’t.