If you thought the bailout of the banks is over and solved, forget about it.
Citigroup (NYSE:C) is now back in the limelight. Like AIG, Citigroup has a portfolio of CDO's (collateralized debt obligations) that are being held "off the books." These transactions are hidden from investors and the public. The US Treasury Department met on Friday and came up with a new wrinkle. It would give Citigroup $20 billion dollars and set up a new insurance program. It would guarantee up to $5 billion dollars for the purpose of assuming a "loss protection" on certain assets. Again there is no definition of which assets would be covered nor is the amount of loss protection specified. It leaves the details to the discretion of the Treasury Department. We can't even find out what happened to first $350 billion dollars. Here we go again with another cloak and dagger operation. I don't know why we, ordinary Americans, can't get answers from the banks as to how the money was spent.
Treasury says the program would strengthen the economy, protect American jobs, savings and retirement security. What a grand scenario.
Can you figure out how to get answers from the banks about how the first $350 billion dollars was spent?
Closing Bell: Economic Catapult for Thanksgiving & Black Friday (WMT, TGT, GRMN, GOOG, MSFT)
Deere up on Q4 earnings performance
Reid Hoffman: LinkedIn will go public (at some point)
Reader Comments (Page 1 of 1)
1-05-2009 @ 3:58PM
BHarrison said...
It comes down to be a matter of due diligence and competent
performance of fidicuary responsibilities, which the Fed and SEC personnel
unequivocally did NOT and have not exercise.
So, per the article, Madoff duped the SEC personnel, not once or
twice; but EIGHT TIMES. Even then, the SEC NEVER discovered the
FRAUD until the Ponzi scheme was collapsing on its own; then it
became too obvious for ANYONE to ignore.
Now the FIs are not revealing (at least the SEC isn't revealing) what the FIs are doing with the Bailout monies that they ave received to date.
Government incompetence and/or corruption has simply become too
pervasive . . . extending from the Fed to the SEC, and many of the
other government agencies. Hell, Congress is the biggest CULPRIT in
all of this. Congress 1) voted against increased regulation of
Fannie, Freddie, the FIs, etc.; 2) allowed many of the previous
"token" regulation expire without renewing the regulations; 3)
agreed to "relax" even the remaining regulations and oversights.
So, our economic debacle is really based on a BASIC FAILURE of both
our government, our regulatory agencies, and the corporate managment.
It is all based on the BLATANT LACK of INTEGRITY in all sectors,
including the financial audting firms which are a front line
"defense" against illegal, corrupt, and unethical business practices.
"People deserve the government that they have . . .." . . . because
they have elected the politicians and tolerated their performance.
The American people must demand and vote for change. Otherwise,
nothing will change. Both the RNC and the DNC must be wrested from
the control of the elitists special interests groups.