Comments on: With Government Talking to Citi About a Larger Stake, Bank Nationalization Still Off the Table

By: Bank of America, Citigroup Told to Boost Capital as Validity of Bank Stress Tests Are Called Into Question

Wed, 29 Apr 2009 10:06:28 +0000

[...] The government may become Citi’s largest shareholder as soon as next month when the bank converts as much as $52 billion in preferred stock into common shares. [...]

By: AIG to Seek More Government Assistance as it Braces for a $60 Billion Quarterly Loss

Wed, 18 Mar 2009 16:51:42 +0000

[...] the government will convert its preferred AIG shares, which pay a 10% dividend, into common stock, something U.S. officials are reportedly discussing with Citigroup Inc. [...]

By: Plan to Repair U.S. Banking System Unveiled by Former Hedge Fund Manager

Plan to Repair U.S. Banking System Unveiled by Former Hedge Fund Manager — Wed, 25 Feb 2009 13:05:53 +0000

[...] simply need to stop juggling the pieces separately and embrace a total solution. If the government is going to nationalize some banks, which it says it doesn’t want to do, or if it is going to buy troubled assets, which it says [...]

By: Bill

Bill — Tue, 24 Feb 2009 14:57:50 +0000

These banks in essence have already failed and require federal intervention to keep them afloat. The FDIC only has $44 billion dollars in its arsenal to save the banking system and FDIC already has a $22 billion dollar exposure from previous bank failures (see details: http://wethepeopleoftheunitedstatesofamerica.com/cost_of_banking_failure.html) The FDIC in restructures and sells the assets of these financial intuitions while absorbing all of the losses. The federal government bailing out the larger banks in essence is doing what the FDIC can’t handle. The Federal Government bailing out the banks and becoming a share holder is a better deal that just handing over assets and absorbing a loss. There is going to be a time in the future where these federally bald out banks will be turning a profit, increase in share value and the federal government will be able to sell its stake at a profit thus returning the federally subsidized tax payers money back to the tax payers.