Friday, December 11, 2009

KingCast sees Sam Shaulson's Citibank scum-sucking rat client struggle to pay off TARP money with more bogus investments to fleece the World Public.

From yesterday's Daily Finance piece, "Why Citi is in a rush to pay back its last $20 billion in TARP."
And the U.S. isn't going to let Citi out of TARP without coming up with a way of dealing with those $301 billion in sick assets, according to BusinessWeek......So the answer for Citi appears to be raising about $20 billion in new capital from investors. That funding could come in the form of $10 billion in equity and $10 billion of other securities. At about $4 a share, Citi is trading at a significant discount to the assets on its books. And one analyst told BusinessWeek: "People will think it's a great deal."

Problem is, the books are probably wildly optimistic. Citi hold many complex assets with the potential for becoming toxic. And don't forget the assets off Citi's books -- called special purpose entities (SPEs), which helped wipe out Enron. Citi has $996.6 billion worth of SPEs. I'm not sure we can be confident that these will not blow up -- particularly considering that they consist of highly risky paper from student loans, subprime mortgages and credit card receivables.

Considering the troubled assets Citi is holding that have yet to recover, if the U.S. lets it sucker some investors into buying equity so it can pay back the $20 billion TARP -- and go back to the days of high risk and huge bonuses -- taxpayers will end up being saddled with a bigger bill further down the road.

This scum-sucking rat post contains all the relevant links that show the history of Citibank's brand of corporate criminality and/or deception, all over the World, including Enron, Ohio, California, Mexico, Russia. For more visit Citibankisracist blog.

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