De Graaf

Citigroup: Another Bad Deal

These guys from Zachs, definitately don't have anything in common with the nuts function this company delivers on a global basis.
The deal looks bad indeed for the taxpayer. Their credit status won't improve by this, nor does their real estate values go up. All true.

But consider this; people took risks, banks took risks, and the only one that had to regulate this is government together with independant (SEC)bank auditors. The latter ones failed big time.

Now, about your rant about the government not making any money on the CitiGroup deal. You haven't looked into the deal. Because they receive $7 billion in preferred stock @ ~8 percent interest annually. Next to that, they receive warrants for acquiring 4.9 percent of common stock when its hit $10.50. That is very attractive for the taxpayer. Especially when you consider, that this banking giant is the motor of global finance and restructuring its cost base to be ready for the next century in finance.

So basically what Zach's is saying, is based on a rant against CitiGroup.
Please analyse your market some better next time. This downgrades your company on my list instantly. I hope also with the others in the community.

In regard to the auto-industry, please; what is wrong with you people. The automakers except for Ford, where already on the brink of collapse, after 20 years of mismanagement. Their union contracts and social security obligations are insane for this type of market. How about competitiveness? We are the big tree, and you just save our ass Congress...right. That is taxpayer dillusion.
I say, let the strong and competent survive over the weak and incompetent corporations. Social interventionalism must be used to reform the health care system on a government level. Not corporate wise.

brgds.