Update: Well this post is already obsolete, but we stand by our criticism. We tax payers should not subsidize Citigroup shareholders.
Tonight (November 23), The Wall Street Journal reports in Bailout Talks Accelerate for Ailing Citigroup that the government is negotiating to be the residual claimant of a separate entity that would house Citigroup’s worst assets and derivative bets.
Citigroup could lose up to $50,000,000,000, and then the government would absorb the losses. It is kind of like buying flood or hurricane insurance after the flood or hurricane. (Seems kind of… Read the rest
