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    « Friday Fun Video: O, For Tuna | Main | Consumer Loans on the List for TARP »

    November 24, 2008
    Citi Scores Bailout Deal from the Government

    Poor Lehman Brothers. The company will be forever known as the company that was allowed to fail — while all around it, companies are being saved. Lehman might not have been "too big to let fail," but just about everything since has been put into that category. Including Citi.

    Top1
    Over the weekend the government announced a Citi bailout. (Stock markets around the world are doing a victory dance this morning.) This isn’t really part of the $700 billion bailout deal. And, really, when you think about it, the $700 billion package wasn’t actually necessary. The government will just be handing out random amounts of money, no matter what, from wherever the people in charge want.

    Anyway, here are some of the details of the Citi bailout:

    * Infusion of capital for Citi.
    * Government guarantees about $300 billion in troubled assets.
    * Government will limit executive compensation.
    * Citi has to reduce its dividend payout.

    Things are getting a little crazy up in here. The next question is this: Which bank will *need* a bailout next?

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