You definitely get the feeling that while Citi may be the biggest of the sick banks, it is hardly the only sick bank. For better or worse, the government has now set a precedent for phase-two bailouts (not to coin a term or anything). The government guarantee on risky debt currently valued at $306 billion in combination with another $20 billion cash injection may well be replicated at other banks. The question is which banks. More than 100 have applied for TARP funds. We'll see if a mechanism emerges by which they can also request guarantees on their troubled assets. A related question of course is whether this new model will actually work. We'll have more on this issue a bit later.

For more:
- here's some background from the AP

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