Congress Debates Citigroup Bailout
During the last week we have seen financial giant Citigroup’s stock plunged more than 60% in value. At this time last year, Citigroup stock was worth somewhere around $30 per share. Today Citigroup stock is worth $3.77 per share. That is major tumble in stock price for a company once revered as one the most prestigious financial corporations in the world. It is surprising that Citigroup is requesting money from the Paulson Act’s Troubled Asset Relief Program. It is estimated that Citigroup owns about $100 Billion in toxic assets.
On November 23, 2008 congress held an emergency session to determine what will be needed to stabilize Citigroup and keep the stock from falling any further. Citigroup has an estimated $2 Trillion in assets. Many of these assets are tied to mortgages, auto loans and credit cards. Our economy can not afford another failure of a major financial institution like Citigroup. Citigroup has more than 200 million customers and operates in 106 countries around the world.
The government definitely needs to come up with a rescue plan that will keep Citigroup from going under. A corporation as large as Citigroup employs several hundred thousand people. We simply can not allow this company to go the route of Lehman Brothers. The confidence lost in the markets has been felt deeply due to the failure of Lehman Brothers. Citigroup has definitely become an icon in our financial system. Their failure would be certainly quite catastrophic. However, with the help of congress it is unlikely that such a failure will take place.
During the last week we have seen financial giant Citigroup’s stock plunged more than 60% in value. At this time last year, Citigroup stock was worth somewhere around $30 per share. Today Citigroup stock is worth $3.77 per share. That is major tumble in stock price for a company once revered as one the most prestigious financial corporations in the world. It is surprising that Citigroup is requesting money from the Paulson Act’s Troubled Asset Relief Program. It is estimated that Citigroup owns about $100 Billion in toxic assets.
On November 23, 2008 congress held an emergency session to determine what will be needed to stabilize Citigroup and keep the stock from falling any further. Citigroup has an estimated $2 Trillion in assets. Many of these assets are tied to mortgages, auto loans and credit cards. Our economy can not afford another failure of a major financial institution like Citigroup. Citigroup has more than 200 million customers and operates in 106 countries around the world.
The government definitely needs to come up with a rescue plan that will keep Citigroup from going under. A corporation as large as Citigroup employs several hundred thousand people. We simply can not allow this company to go the route of Lehman Brothers. The confidence lost in the markets has been felt deeply due to the failure of Lehman Brothers. Citigroup has definitely become an icon in our financial system. Their failure would be certainly quite catastrophic. However, with the help of congress it is unlikely that such a failure will take place.
Labels: apply for a credit card, Citigroup, credit cards, TARP
Credit Card / Financial news blog post by Todd Holliday at 8:03 PM 