Citibank: To nationalize or not to nationalize.

Discussion in 'Economy' started by tigerbob, Feb 24, 2009.

  1. tigerbob
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    tigerbob Increasingly jaded.

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    As Citi looks for more Federal cash, the path the Obama administration may have to follow has already been laid out - for better or worse.

    http://www.nytimes.com/2009/02/24/business/worldbusiness/24pound.html?hp
     
  2. Paulie
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    Paulie Platinum Member

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    If it ends up being 40% like what's been discussed, that's not nationalization.
     
  3. tigerbob
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    tigerbob Increasingly jaded.

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    I know. But it wasn't 50% of RBS originally either.
     
  4. Paulie
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    Paulie Platinum Member

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    The media's doing a real hack job on investor sentiment. It's like a different story out of their mouths as each report comes out.

    I personally don't believe it'll be a minority stake, I think the government will take as much a stake as they feel they need to. They have to be very careful and tiptoe around their details because the tiniest little slip of the tongue can cause another mini crash.
     
  5. GHook93
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    GHook93 Aristotle

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    Citibank cost my company 55 direct jobs! There were 55 people working directly on their account! Fuck them!

    Funny think they were trying to hold a seminar on retirement in my company. Usu they get a dozen or so people. This year not 1 person showed up and this was the first year they tried to bribe us with lunch.

    Fuck them! Let them go under! I say let them fail and anyone who has a loan with them, get away Scott-free and no longer owns anything!
     
  6. editec
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    editec Mr. Forgot-it-All

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    I guess I keep failing to understand why we call it nationalization when our government is PAYING FAR TOO MUCH to bail out banks that have ZERO MARKET VALUE.

    Could somebody explain to me why you think if we buy something people are calling it nationalization?

    I must be missing something obvious.
     
  7. Paulie
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    Paulie Platinum Member

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    If the government takes a majority stake in common equity, they will essentially contol the company. That would be nationalization, Ed, because the taxpayers own a majority of the bank.

    It's no different than what Chavez does, only it's not as hostile.
     
  8. Toro
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    Toro Diamond Member

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    I think the end-game is nationalization for a few of the banks.

    They will not allow them to go bankrupt, not after what happened to Lehman. Stocks fell 23% in five days and the inter-bank market seized up after Lehman filed, sending markets into chaos. They won't allow that to happen again, even if they only pay $1 for all the equity in the company.
     
  9. Charles_Main
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    Charles_Main AR15 Owner

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    I only hope any steps taken, are temporary and do not become a trend toward More Permanent and Centralized Government control of the Economy.

    I truly hope all this crap works, but Can not help but philosophically think it wont.
     
  10. Toro
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    Toro Diamond Member

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    In his testimony today, Bernanke said they wouldn't nationalize the banks because "there's no need to." When he finished, the market took off like a rocket.
     

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