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Shadow
Yavvanam Kaatesina Bewarse
Username: Shadow
Post Number: 3437
Registered: 05-2008
Posted From: 68.198.151.34
Rating:N/A
Votes: 0(Vote!) | | Posted on Monday, November 24, 2008 - 4:18 pm: |    |
Andhramass :yendhi house theesi GM vaaa?
oka sadharana software koolie ni  |
Shadow
Yavvanam Kaatesina Bewarse
Username: Shadow
Post Number: 3436
Registered: 05-2008
Posted From: 68.198.151.34
Rating:N/A
Votes: 0(Vote!) | | Posted on Monday, November 24, 2008 - 4:18 pm: | |
Andhramass :ayyina china town lo branch anthey chinki odini manager ga yedutharu kadhaaa
aa matram reasoning untey Appi itta enduku untaadu  |
Aggi_pidugu
Celebrity Bewarse
Username: Aggi_pidugu
Post Number: 24170
Registered: 05-2006
Posted From: 12.168.68.11
Rating:N/A
Votes: 0(Vote!) | | Posted on Monday, November 24, 2008 - 3:46 pm: | |
Andhramass :ayyina china town lo branch anthey chinki odini manager ga yedutharu kadhaaa
Mana sippesh sinkodi lagane vuntadu and mandarin anargalam ga matadestadu le
HERE COMES THE LEGEND  |
Pedarayudu
Kurra Bewarse
Username: Pedarayudu
Post Number: 1394
Registered: 04-2007
Posted From: 129.138.250.120
Rating:N/A
Votes: 0(Vote!) | | Posted on Monday, November 24, 2008 - 3:45 pm: | |
appleass ga |
Tingari_xx
Mudiripoyina Bewarse
Username: Tingari_xx
Post Number: 8282
Registered: 08-2006
Posted From: 205.157.110.11
Rating:N/A
Votes: 0(Vote!) | | Posted on Monday, November 24, 2008 - 3:43 pm: | |
//ayyina china town lo branch anthey chinki odini manager ga yedutharu kadhaaa//
darren mama
anduke mimmalni down under anedi |
Andhramass
Celebrity Bewarse
Username: Andhramass
Post Number: 21951
Registered: 07-2006
Posted From: 203.26.122.12
Rating:N/A
Votes: 0(Vote!) | | Posted on Monday, November 24, 2008 - 3:40 pm: | |
NY downtown lo china town ane place vuntadi akkada branch manager.
ayyina china town lo branch anthey chinki odini manager ga yedutharu kadhaaa
మాస్ అంటే ఇష్టం, బెజవాడ అంటే ప్రాణం |
Aggi_pidugu
Celebrity Bewarse
Username: Aggi_pidugu
Post Number: 24168
Registered: 05-2006
Posted From: 12.168.68.11
Rating:N/A
Votes: 0(Vote!) | | Posted on Monday, November 24, 2008 - 3:38 pm: | |
Shadow :Appi matalu vintey anthey sangathulu
mass gaa mana shadow NY downtown lo china town ane place vuntadi akkada branch manager.
he acts like he is a stinky chinky
HERE COMES THE LEGEND |
Andhramass
Celebrity Bewarse
Username: Andhramass
Post Number: 21950
Registered: 07-2006
Posted From: 203.26.122.12
Rating:N/A
Votes: 0(Vote!) | | Posted on Monday, November 24, 2008 - 3:37 pm: | |
yendhi house theesi GM vaaa?
మాస్ అంటే ఇష్టం, బెజవాడ అంటే ప్రాణం |
Shadow
Yavvanam Kaatesina Bewarse
Username: Shadow
Post Number: 3433
Registered: 05-2008
Posted From: 68.198.151.34
Rating:N/A
Votes: 0(Vote!) | | Posted on Monday, November 24, 2008 - 3:35 pm: | |
AM, nenu manager endi
Appi matalu vintey anthey sangathulu |
Andhramass
Celebrity Bewarse
Username: Andhramass
Post Number: 21948
Registered: 07-2006
Posted From: 203.26.122.12
Rating:N/A
Votes: 0(Vote!) | | Posted on Monday, November 24, 2008 - 3:32 pm: | |
ammani chipesh manager aaa
మాస్ అంటే ఇష్టం, బెజవాడ అంటే ప్రాణం |
Aggi_pidugu
Celebrity Bewarse
Username: Aggi_pidugu
Post Number: 24156
Registered: 05-2006
Posted From: 12.168.68.11
Rating:N/A
Votes: 0(Vote!) | | Posted on Monday, November 24, 2008 - 9:20 am: | |
sup shadowesh u stinky chinky
HERE COMES THE LEGEND |
Shadow
Yavvanam Kaatesina Bewarse
Username: Shadow
Post Number: 3418
Registered: 05-2008
Posted From: 68.198.151.34
Rating:N/A
Votes: 0(Vote!) | | Posted on Monday, November 24, 2008 - 9:13 am: | |
|
Aggi_pidugu
Celebrity Bewarse
Username: Aggi_pidugu
Post Number: 24155
Registered: 05-2006
Posted From: 12.168.68.11
Rating:N/A
Votes: 0(Vote!) | | Posted on Monday, November 24, 2008 - 9:07 am: | |
Chippesh is NY- Chinatown -Citibank branch manager FYI
HERE COMES THE LEGEND |
Tingari_xx
Mudiripoyina Bewarse
Username: Tingari_xx
Post Number: 8278
Registered: 08-2006
Posted From: 205.157.110.11
Rating:N/A
Votes: 0(Vote!) | | Posted on Monday, November 24, 2008 - 9:02 am: | |
asalu ee year crisis start ainapude GS lo pani sese oka frd seppadu, ipudu soopinche 2bil loss etc antha trash..min ga 20-50 range lo vuntadi, slow ga soopistaru koncham koncham ani |
Shadow
Yavvanam Kaatesina Bewarse
Username: Shadow
Post Number: 3416
Registered: 05-2008
Posted From: 68.198.151.34
Rating:N/A
Votes: 0(Vote!) | | Posted on Monday, November 24, 2008 - 8:56 am: | |
quote:chip ba
from wat i read, pandit has done a good job
I feel one yr was too short for him to clean up that mess. |
Shadow
Yavvanam Kaatesina Bewarse
Username: Shadow
Post Number: 3415
Registered: 05-2008
Posted From: 68.198.151.34
Rating:N/A
Votes: 0(Vote!) | | Posted on Monday, November 24, 2008 - 8:55 am: | |
turbans has 5% stake now  |
Codes
Celebrity Bewarse
Username: Codes
Post Number: 15781
Registered: 05-2006
Posted From: 212.99.225.2
Rating:N/A
Votes: 0(Vote!) | | Posted on Monday, November 24, 2008 - 8:51 am: | |
rediff peru cheppi nanu kumminatu vundi 
First act , Then improve..  |
420
Mudiripoyina Bewarse
Username: 420
Post Number: 5182
Registered: 12-2006
Posted From: 194.229.234.1
Rating:N/A
Votes: 0(Vote!) | | Posted on Monday, November 24, 2008 - 8:51 am: | |
How are the Turban Lads holding up the company .. are they helping out in any way ..
Pandit's fav destination was Chalooo Dubai
Since your Arrival , we are having good comedy and entertainment !!!  |
Tingari_xx
Mudiripoyina Bewarse
Username: Tingari_xx
Post Number: 8277
Registered: 08-2006
Posted From: 205.157.110.11
Rating:N/A
Votes: 0(Vote!) | | Posted on Monday, November 24, 2008 - 8:49 am: | |
chip ba
from wat i read, pandit has done a good job |
Shadow
Yavvanam Kaatesina Bewarse
Username: Shadow
Post Number: 3414
Registered: 05-2008
Posted From: 68.198.151.34
Rating:N/A
Votes: 0(Vote!) | | Posted on Monday, November 24, 2008 - 8:46 am: | |
quote:vikram pandit job kee esaru pedutaru emo papam..
ninna rediff lo Can Vikram save the bank ani oka chettha analysis pettadu..andulo anni manaki telsina info tappa..vere info emi ledu. Boy, u shud read the comments..some punks who doesn't know a b c's posted comments on Vikram  |
Shadow
Yavvanam Kaatesina Bewarse
Username: Shadow
Post Number: 3413
Registered: 05-2008
Posted From: 68.198.151.34
Rating:N/A
Votes: 0(Vote!) | | Posted on Monday, November 24, 2008 - 8:45 am: | |
quote :You reply saying .. Thanks for staying focussed and not switching the PinkSlip printer ..
It was on from last 18 months ... so far more than 20k ppl were laid off and another 58k on the row  |
Codes
Celebrity Bewarse
Username: Codes
Post Number: 15780
Registered: 05-2006
Posted From: 212.99.225.2
Rating:N/A
Votes: 0(Vote!) | | Posted on Monday, November 24, 2008 - 8:28 am: | |
citi loo working aa.. vikram pandit job kee esaru pedutaru emo papam..
First act , Then improve.. |
420
Mudiripoyina Bewarse
Username: 420
Post Number: 5181
Registered: 12-2006
Posted From: 194.229.234.1
Rating:N/A
Votes: 0(Vote!) | | Posted on Monday, November 24, 2008 - 8:28 am: | |
<<...thanx for staying focussed and serving out clients in this turbulent period>>
You reply saying .. Thanks for staying focussed and not switching the PinkSlip printer ..
Since your Arrival , we are having good comedy and entertainment !!! |
Shadow
Yavvanam Kaatesina Bewarse
Username: Shadow
Post Number: 3412
Registered: 05-2008
Posted From: 68.198.151.34
Rating:N/A
Votes: 0(Vote!) | | Posted on Monday, November 24, 2008 - 8:21 am: | |
fed,fdic and treasury came to our rescue and mentioned abt the press release...thanx for staying focussed and serving out clients in this turbulent period |
Shadow
Yavvanam Kaatesina Bewarse
Username: Shadow
Post Number: 3411
Registered: 05-2008
Posted From: 68.198.151.34
Rating:N/A
Votes: 0(Vote!) | | Posted on Monday, November 24, 2008 - 8:19 am: | |
quote:In India its other way around .. Rich outWeigh the Poor .
not only in India but in majority of countries in the world |
Codes
Celebrity Bewarse
Username: Codes
Post Number: 15779
Registered: 05-2006
Posted From: 212.99.225.2
Rating:N/A
Votes: 0(Vote!) | | Posted on Monday, November 24, 2008 - 8:19 am: | |
emi antadu.. 
First act , Then improve.. |
Shadow
Yavvanam Kaatesina Bewarse
Username: Shadow
Post Number: 3410
Registered: 05-2008
Posted From: 68.198.151.34
Rating:N/A
Votes: 0(Vote!) | | Posted on Monday, November 24, 2008 - 8:18 am: | |
early morning 3.45 ki CEO nunchy email |
420
Mudiripoyina Bewarse
Username: 420
Post Number: 5180
Registered: 12-2006
Posted From: 194.229.234.1
Rating:N/A
Votes: 0(Vote!) | | Posted on Monday, November 24, 2008 - 8:13 am: | |
In India its other way around .. Rich outWeigh the Poor .
Since your Arrival , we are having good comedy and entertainment !!! |
Shadow
Yavvanam Kaatesina Bewarse
Username: Shadow
Post Number: 3409
Registered: 05-2008
Posted From: 68.198.151.34
Rating:N/A
Votes: 0(Vote!) | | Posted on Monday, November 24, 2008 - 8:11 am: | |
true but it doesn't happen in other countries |
420
Mudiripoyina Bewarse
Username: 420
Post Number: 5179
Registered: 12-2006
Posted From: 194.229.234.1
Rating:N/A
Votes: 0(Vote!) | | Posted on Monday, November 24, 2008 - 8:09 am: | |
<<US is probably the only country where the poor out weigh the rich>>
Poor have access to KFC's and MCDonalds ..
and Rich have access to good Gym's
so you can see Poor outWeigh the Rich ..
Since your Arrival , we are having good comedy and entertainment !!! |
Shadow
Yavvanam Kaatesina Bewarse
Username: Shadow
Post Number: 3408
Registered: 05-2008
Posted From: 68.198.151.34
Rating:N/A
Votes: 0(Vote!) | | Posted on Monday, November 24, 2008 - 8:06 am: | |
US is probably the only country where the poor out weigh the rich  |
420
Mudiripoyina Bewarse
Username: 420
Post Number: 5178
Registered: 12-2006
Posted From: 194.229.234.1
Rating:N/A
Votes: 0(Vote!) | | Posted on Monday, November 24, 2008 - 8:04 am: | |
<<nee portfolio inko 20% tagutundi.. >>
Since your Arrival , we are having good comedy and entertainment !!! |
Shadow
Yavvanam Kaatesina Bewarse
Username: Shadow
Post Number: 3407
Registered: 05-2008
Posted From: 68.198.151.34
Rating:N/A
Votes: 0(Vote!) | | Posted on Monday, November 24, 2008 - 8:04 am: | |
tinadaniki tindi lekapothey xmas shopping endi...ee country lo nu undav ittantivi...happens only in vomerica |
Codes
Celebrity Bewarse
Username: Codes
Post Number: 15778
Registered: 05-2006
Posted From: 212.99.225.2
Rating:N/A
Votes: 0(Vote!) | | Posted on Monday, November 24, 2008 - 8:01 am: | |
& add xmas shopping.. new year loo unemployment perugutundi.. many wont be able to pay their bills & use credit cards..
nee portfolio inko 20% tagutundi..
First act , Then improve.. |
420
Mudiripoyina Bewarse
Username: 420
Post Number: 5177
Registered: 12-2006
Posted From: 194.229.234.1
Rating:N/A
Votes: 0(Vote!) | | Posted on Monday, November 24, 2008 - 7:58 am: | |
<<Credit Card crisis is already in progress.. next year end ki idi full length lo kanapadutundi.
>>
Many people who lost jobs etc etc are surviving on Credit cards .. predection , begin of next year . We might see a tipping point ,where they raise their hands up and default ..
and Banks will goo Baa baaa bayee ..
Since your Arrival , we are having good comedy and entertainment !!! |
Shadow
Yavvanam Kaatesina Bewarse
Username: Shadow
Post Number: 3406
Registered: 05-2008
Posted From: 68.198.151.34
Rating:N/A
Votes: 0(Vote!) | | Posted on Monday, November 24, 2008 - 7:46 am: | |
pre-market 5.85, up by 55%  |
Shadow
Yavvanam Kaatesina Bewarse
Username: Shadow
Post Number: 3405
Registered: 05-2008
Posted From: 68.198.151.34
Rating:N/A
Votes: 0(Vote!) | | Posted on Monday, November 24, 2008 - 7:39 am: | |
23% antey around 1$ |
Tingari_xx
Mudiripoyina Bewarse
Username: Tingari_xx
Post Number: 8276
Registered: 08-2006
Posted From: 76.109.147.47
Rating:N/A
Votes: 0(Vote!) | | Posted on Monday, November 24, 2008 - 7:33 am: | |
Shadow :
premarket lo 23% increase, who eva got on friday evening made a GOOD profit |
Shadow
Yavvanam Kaatesina Bewarse
Username: Shadow
Post Number: 3404
Registered: 05-2008
Posted From: 68.198.151.34
Rating:N/A
Votes: 0(Vote!) | | Posted on Monday, November 24, 2008 - 7:29 am: | |
>>Banks will cover their bases and they screw up the consumers even tighter.
idi lock sesko  |
Infinity
Mudiripoyina Bewarse
Username: Infinity
Post Number: 5782
Registered: 04-2005
Posted From: 71.68.55.120
Rating:N/A
Votes: 0(Vote!) | | Posted on Monday, November 24, 2008 - 7:27 am: | |
Credit Card crisis is already in progress.. next year end ki idi full length lo kanapadutundi.
The reason is: My Amex card have 20000 Limit. I hardly use 1000 dollars out of it in any month since I am using no-limit Gold card. The rate was PRIME+400 basis points: 9% was there since 3years.. They increased it to PRIMe+900 basis points now without even any default payment. They sent special letter saying my risk is very high. I called them up, they said we are doing it even for people with millions of dollars income also. Dont think much about it ani chepparu. There is no way I can reject the new terms also with AMex. They have right to modify.
Same way my fico score dropped off from 696 to 621 last month for no reason. I have not made any new loans or not applied for new credit.
The bottomline is: The consumer will end up screwing up his entire earnings for years due to most screwed up FICO score and the dependency on these credit profiles. If consumer default loan or credit cards.. it is virtually increasing his cost of living, cost of borrowing and more hassles to get an apartment, credit card or car loan. Totally it makes your life a nightmare. I dont know how many people affected.. but this FICO system needs to be abolished and something should come up with practical approach that takes earnings also into account.
My assumption is: Banks will cover their bases and they screw up the consumers even tighter. |
Codes
Celebrity Bewarse
Username: Codes
Post Number: 15777
Registered: 05-2006
Posted From: 212.99.225.2
Rating:N/A
Votes: 0(Vote!) | | Posted on Monday, November 24, 2008 - 7:17 am: | |
ee time loo CreditCard crisis kooda voste..
First act , Then improve.. |
420
Mudiripoyina Bewarse
Username: 420
Post Number: 5176
Registered: 12-2006
Posted From: 194.229.234.1
Rating:N/A
Votes: 0(Vote!) | | Posted on Monday, November 24, 2008 - 7:11 am: | |
Phase1 : SubPrime crisis and its effects (ongoing)
Phase2 : CreditCard Crisis (2009 and beyond)
Phase3 : ??
Since your Arrival , we are having good comedy and entertainment !!! |
Shadow
Yavvanam Kaatesina Bewarse
Username: Shadow
Post Number: 3403
Registered: 05-2008
Posted From: 68.198.151.34
Rating:N/A
Votes: 0(Vote!) | | Posted on Monday, November 24, 2008 - 7:11 am: | |
hammiyya ippatiki ok annamaata  |
Infinity
Mudiripoyina Bewarse
Username: Infinity
Post Number: 5781
Registered: 04-2005
Posted From: 71.68.55.120
Rating:N/A
Votes: 0(Vote!) | | Posted on Monday, November 24, 2008 - 6:59 am: | |
they will provide another round like what they did for AIG. By then new govt. will come into picture and it depends on how Obama govt operates on these TARP and other bailout programmes.
For AIG, infact they totally modified the first loan by giving up all the terms by underwriting with a new contract.
In the history of any government or financial industry, no govt/company re-nogitiated the terms it set initially for AIG. Initially AIG borrowed 80Bn at the rate of LIBOR+850 basis points to just LIBOR (real terms: 14% to 5%). This is most redeculus step in banking.
It is something like, you pay him 100 bucks and he lost it. You still give him another 150 bucks in even better terms that cover the 100 bucks loss.
In US no bank allows our fixed term or a credit card balance transfer or personal contract loan to be under written with new set of rules and rate agreement. These products amount 2 to 3 trillion dollars and the very basic rule is.. you can not change the terms of the contract in the middle. PERIOD. If Bank want to give consumer a different rate, they must payoff/swap the debt to another contract( rate option) and provide the benifit to the consumer. |
Codes
Celebrity Bewarse
Username: Codes
Post Number: 15776
Registered: 05-2006
Posted From: 212.99.225.2
Rating:N/A
Votes: 0(Vote!) | | Posted on Monday, November 24, 2008 - 6:35 am: | |
come back*
First act , Then improve.. |
Codes
Celebrity Bewarse
Username: Codes
Post Number: 15775
Registered: 05-2006
Posted From: 212.99.225.2
Rating:N/A
Votes: 0(Vote!) | | Posted on Monday, November 24, 2008 - 6:35 am: | |
300 Bn ante too much money for one bank..
inko 2 weeks loo Detroit kee istaru , Dec loo stocks price raise avutayi.. untill xmas.. & then the story repeats..
what if they back for federal help after 2 or 3 quarters ???
First act , Then improve.. |
Infinity
Mudiripoyina Bewarse
Username: Infinity
Post Number: 5780
Registered: 04-2005
Posted From: 71.68.55.120
Rating:N/A
Votes: 0(Vote!) | | Posted on Monday, November 24, 2008 - 6:28 am: | |
http://online.wsj.com/public/resources/documents/c iti-term-sheet-1123.pdf
Chippessh: First class bail out ichindi kotha terms tho. 300Bn varaku guarantees. 20Bn fresh capital. I had the same feeling last night that they will swap some troubled assets and give some money under TARP. However FDIC thing is surprise to me.
Kummukondi... It will be a rally today for C.
http://online.wsj.com/article/SB122747680752551447 .html
Article:
he federal government agreed Sunday night to rescue Citigroup Inc. by helping to absorb potentially hundreds of billions of dollars in losses on toxic assets on its balance sheet and injecting fresh capital into the troubled financial giant.
The agreement marks a new phase in government efforts to stabilize U.S. banks and securities firms. After injecting nearly $300 billion of capital into financial institutions, federal officials now appear to be willing to help shoulder bad assets, on a targeted basis, from specific institutions. (Terms of the deal)
[Citibank] Bloomberg News/Landov
Pedestrians walk past a Citibank branch in New York.
Citigroup is one of the world's best-known banking brands, with more than 200 million customer accounts in 106 countries. Its plunging stock price threatened to spook customers and imperil the bank.
If the government's rescue plan is a success, it could help bring stability to the entire financial system. If it doesn't, even deeper doubts about the industry's future could spread.
After a weekend of marathon talks between Citigroup executives and top federal officials, the parties late Sunday night nailed down a package in which the government will help protect the company from its riskiest assets.
Under the plan, Citigroup and the government have identified a pool of about $306 billion in troubled assets. Citigroup will absorb the first $29 billion in losses in that portfolio. After that, three government agencies -- the Treasury Department, the Federal Reserve and the Federal Deposit Insurance Corp. -- will take on any additional losses, though Citigroup could have to share a small portion of additional losses.
The plan would essentially put the government in the position of insuring a slice of Citigroup's balance sheet. That means taxpayers will be on the hook if Citigroup's massive portfolios of mortgage, credit cards, commercial real-estate and big corporate loans continue to sour.
In exchange for that protection, Citigroup will give the government warrants to buy shares in the company.
In addition, the Treasury Department also will inject $20 billion of fresh capital into Citigroup. That comes on top of the $25 billion infusion that Citigroup recently received as part of the the broader U.S. banking-industry bailout.
[Sanford Weil] Associated Press
Former CEO Sanford Weill
The government and Citigroup had hoped to unveil the plan early Sunday evening, but negotiations dragged on longer than expected. Treasury Secretary Henry Paulson began briefing Congressional leaders about the plan later in the evening.
Asian markets were mostly lower in early Monday trading as news of the discussions surfaced. Japan's markets were closed for a holiday.
The sweeping rescue plan underscores how concerned the government had become about letting Citigroup's fortunes continue to deteriorate. The company has been pounded by mortgage-related losses and is on track to suffer further from the weakening economies in the U.S. and around the world.
Last week, with Wall Street rapidly losing confidence in the company, its shares tumbled 60% to a 16-year low. Still, Citigroup Chief Executive Vikram Pandit and other top executives insisted last week that the company remained on solid financial footing.
While Citigroup's recent woes don't appear to be as severe as the problems that ultimately felled Bear Stearns Cos. and Lehman Brothers Holdings Inc., the U.S. government seems to have decided it can't afford to gamble on whether Citigroup will weather the storm.
At the same time, the Treasury Department is already facing a political backlash over the use of taxpayer funds to stabilize the banking sector, and has nearly exhausted the $350 billion that Congress allotted to the first phase of the industry rescue.
[Citigroup] Associated Press
Co-CEO John Reed and Sanford Weill welcomed ex-Treasury Secretary Robert Rubin to the firm's board in 1999.
The planned arrangement with Citigroup appears to be an attempt to thread that needle by giving the company some breathing room until markets calm.
In addition to $2 trillion in assets Citigroup has on its balance sheet, it has another $1.23 trillion in entities that aren't reflected there. Some of those assets are tied to mortgages, and investors have worried they could cause heavy losses if they are brought back on the company's books.
The assets affected under the government plan are largely loans and securities backed by residential and commercial real estate. Such assets have been devastated by the meltdown of the housing markets and have started coming under even greater strain in recent weeks as the U.S. economy slows.
"With these transactions, the U.S. government is taking the actions necessary to strengthen the financial system and protect U.S. taxpayers and the U.S. economy," the Treasury Department, Fed and FDIC said in a joint statement issued late Sunday.
Even as they assured employees and investors last week that the company was on sound financial footing, Citigroup executives and directors knew they needed to do something fast to stabilize their company. By Friday, bank officials were hoping for a public expression of confidence from the government, believing that would help reassure clients and customers.
Top government officials, including the heads of the Treasury Department and the Fed, also started scrambling to draw up contingency plans in case Citigroup's troubles intensified.
On Sunday evening, government officials were locked in meetings to hammer out the final terms of an arrangement that will leave the government deeply enmeshed in the inner workings of one of the world's largest financial institutions.
The government didn't require Citigroup to make changes to its executive ranks or its board in return for government assistance. However, Citigroup agreed to "comply with enhanced executive compensation restrictions," the government said Sunday, and also will implement a government-backed plan to modify distressed mortgages that is designed to curb foreclosures.
[Charles Prince] Reuters
Former CEO Charles Prince
Despite the unprecedented scope of the rescue plan, it's not clear whether it will be enough to stabilize Citigroup. The roughly $300 billion pool of assets that are included in the rescue plan represent only a sliver of the company's more than $3 trillion in assets, including its holdings in off-balance-sheet entities.
Jitters about such "hidden" assets helped trigger the nose-dive in Citigroup's stock last week. Among the off-balance-sheet assets are $667 billion in mortgage-related securities.
Citigroup has tried repeatedly to rid itself of its exposure to those assets -- and nearly hammered out a similar arrangement with the government nearly two months ago.
In late September, the company reached an agreement for a government-financed acquisition of Wachovia Corp. Under that planned deal, Citigroup and the government were going to divvy up the losses on $312 billion of assets, with Citigroup absorbing the first $30 billion in losses and the government shouldering the remainder.
Citigroup described that arrangement as intended to insulate it from Wachovia's risky mortgage assets. But Citigroup also would have been able to unload some of its own assets, according to people familiar with the matter.
That deal unraveled in less than a week, after Wells Fargo & Co. emerged with a higher bid that didn't require direct government backing. That deprived Citigroup not only of a way to dump its risky assets but also of a deep pool of deposits, which would have substantially strengthened its access to stable low-cost funding.
Shortly after the Wachovia deal fell apart, Citigroup pitched the idea to the government of it helping to protect the company against some of its losses. Citigroup executives argued that the government should help the company after Wachovia slipped away, according to a person familiar with the matter. But federal officials balked at the idea.
[Pandit] Getty Images
Vikram Pandit became CEO in 2007.
As recently as one month ago, Citigroup had hoped to be able to unload some of those assets to the U.S. government through its Troubled Asset Relief Program, according to people familiar with the bank's plans. But when Treasury Secretary Paulson earlier this month shelved plans to use TARP to purchase banks' bad assets, that option vanished.
Last Monday, Mr. Pandit said in a meeting with employees that Citigroup was scrapping plans to try to sell about $80 billion in risky assets. Investors and analysts interpreted the move as a sign that Citigroup either was unable to sell the assets, or would have had to incur hefty losses in the process.
Two days later, Citigroup announced it was buying $17.4 billion in assets from its structured-investment vehicles -- complex entities whose holdings included risky mortgage-linked securities -- and faced a $1.1 billion loss due to their diminished values.
The back-to-back moves, coupled with existing fears about Citigroup's massive off-balance-sheet holdings, stoked investor fears that Citigroup could be swamped by toxic assets flooding back onto its books. That helped ignite the current panic, which was exacerbated by a drumbeat of bleak economic news.
Government officials could face requests from other banks for similar help shoring up their balance sheets. Banks, hedge funds, and private equity firms have urged Capitol Hill and government officials to restart the asset-purchase program in recent weeks.
"The problem is that other banks would want to get in line" for such government support, says Thomas B. Michaud, a vice chairman of investment bank Keefe, Bruyette & Woods Inc. "Is there enough money to do that?" |
