Dedicated to Deposits: Deals, Data, and Discussion

Citigroup Crisis and Other Banking News

POSTED ON BY

Update 11/24/08: The Feds were able to approve a rescue plan late Sunday: Joint Statement by Treasury, Federal Reserve and the FDIC on Citigroup. More details are in this WSJ article US Agrees to Rescue Struggling Citigroup.

There is still no Citigroup rescue plan as of Sunday 8:00PM EST, but as this CNN article describes, an annoucement could come out as early as tonight. This New York Times article goes into detail of how Citigroup got into this mess. Two other interesting banking related articles of the financial crisis:
Thanks to the readers who have emailed me links to these news stories.

Related Posts

Comments
11 comments.
Comment #1 by Anonymous posted on
Anonymous
Citibank needs to die on its own accord. It created the SIV which got out of hand, and led to the global financial debacle we are now in.

The end is here for citibank.

I hope a bank run on citibank comes this coming week. Anyone should have funds under FDIC limits so this doesnt impact them. They should pull out funds and close their accounts.

This week, hopefully we see a bank run on Citi, and it appears on the failed bank list. I don't say this lightly either.

In the past era of Fortune 500's we saw Oil and Banks as the biggest profit bearers in the American capitalistic system. Citi started back in 1988 with the SIV, which today has helped eclipse us into the global financial debacle we are in right now along with other complicit players.

With WaMU down as well as Citibank down for the count, this is good for the american financial system as a whole. Plenty of new financial institutions which represent the interest of mainstreet will be out there and will breed anew. The days of Citigroup are over.

1
Comment #2 by Anonymous posted on
Anonymous
Latest news of U.S. to inject $20 billion into Citigroup.

This democratic congress is nuts for this. It is a complete waste of taxpayer money and bailing out the cause of SIV's in the first place. They are going to force taxpayers to lose 20 Billion as well since they will not recoup the investment back in the end.

1
Comment #3 by Anonymous posted on
Anonymous
SunTrust sucks. They are deducting 400$ from my savings account . They are claiming I had an outstanding negative balance from 2001 (2001). The fact is I did not but they want to charge me 5$ for each weekly statement (ie 100's of $'s) to prove them wrong!!! I advise anyone to withdraw their oney from this criminal enterprise.

1
Comment #4 by Anonymous posted on
Anonymous
Sorry to diappoint you, guys, we're now bailing out citibank. When are we going to bail out the little guys?
http://news.yahoo.com/s/ap/20081124/ap_on_bi_ge/citigroup

1
Comment #5 by Anonymous posted on
Anonymous
Unfortunately we won't be bailing out the "little guys" because we only bail out institutions that are "too big to fail." Sorry but if something is "too big to fail" then it's simple too big, OR it should be a pillar of marble surrounded by crap in this environment and be able to stand on it's own.

In response to first Anon: A bank run doesn't solve anything as it only serves to demonstrate the collective ignorance of the American people. What we need is either an entirely free market where diseased companies like Citi can fail w/o the Govt stepping in, OR a more regulated banking industry that has the backing of the Govt, but tremendous oversight so they can't pull their little tricks and destroy our economy.

1
Comment #6 by Anonymous posted on
Anonymous
Isn't politics great?

Coporations and financial institutions grew so big that they now intimidate and hold the United States Federal government hostage because "They are too big to fail".

There goes our taxes along with the esculating national dept to pay their ransom demands.

I have yet to see a rescue plan for the little person trying to earn a meager living just for food and shelter.

1
Comment #7 by Anonymous posted on
Anonymous
What concessions did Citi make to get this deal? I understand dividends are to be suspended for 3 years but the same bungling management is still in place. Where's the disincentive for poor management?

1
Comment #8 by Anonymous posted on
Anonymous
I received this communication from Citi this morning:

Good news! Citibank is participating in the FDIC's Temporary Liquidity Guarantee Program. Through December 31, 2009, all of your non-interest and interest bearing checking deposit account balances are fully guaranteed by the FDIC for the entire amount in your account. *

And as a reminder, in October the FDIC increased the amount of insurance on eligible savings accounts -- such as savings, market rate, money market accounts, club and holiday accounts, and certificates of deposits -- from $100,000 to $250,000 through December 31, 2009.**
To learn more about FDIC insurance, visit the agency's web site at www.fdic.gov or call a Citibank representative at 1-800-374-9700. You may also call the FDIC at 877-ASKFDIC (877-275-3342) or TDD 800-925-4618.


* Coverage under the Temporary Liquidity Guarantee Program is in addition to and separate from the coverage available under the FDIC's general deposit insurance rules.

** The deposit insurance coverage limits refer to the total of all deposits that an account holder (or account holders) has at each FDIC-insured bank.

1
Comment #9 by Anonymous posted on
Anonymous
Does anyone else feel like these bailouts are rash and feeble? The government needs a long-term plan, rather than trying to jump-start matters. They need to set a goal and see their idea through successfully!

I think another vital note from this bailout is that we now see the magnitude of this recession. We all should take the necessary steps to recession-proof our lives. In order to do so, I think a realistic estimate of the amount of money we need to cut back on is relevant. Additionally, we all should have a clear vision of our altered future- many people are still living as if we’re in the .com boom of the 90’s! Here’s a great resource I found helpful when reorganizing my future: www.thevisionboardkit.com. This kit actually outlines how to create a vision of your goals and dreams and explains how to execute them with success.

1