Tag:
Uncle Sam
Latest Headlines
Latest Headlines
Citigroup, a good deal for tax payers?
While Goldman Sachs ( GS ) can crow that it paid back its TARP funds nd delivered a solid return to taxpayers, Citigroup ( C ) can make no such boast--at least not yet. Instead it has accepted a 34 percent stake owned by Uncle Sam. It also continues to take advantage of government guarantees o
The exit plan on the Citi bailout?
When good investors enter a deal, they usually have an eye on the exit. Some think that Uncle Sam needs to spell out his exit strategy when it comes to Citigroup, a bank in which it holds a 36 percent stake. The fact that Citigroup appears to be a long way away from paying back the $45 billion in
What about the warrants?
Now that 10 banks have been cleared to pay back TARP funds, one question remains unanswered: How much will banks pay to repurchase the warrants the government gave banks, as part of the original preferred share deal? We've noted before that some are quite concerned that Uncle Sam (that is, taxpaye
Citigroup alone faces big government stake
Not too long ago, it seemed fait accompli that Uncle Sam would end up a large owner of the nation's biggest banks. But a favorable stock climate has allowed some big banks, notably Bank of America and Wells Fargo, to raise more than expected via direct offerings, and asset sales have gone well.
Will Uncle Sam lose on bank warrants?
One big question in the push to pay back TARP funds is how will all those warrants be valued. The government, which received the warrants when they purchased preferred shares in TARP banks, will have to buy them back, but at what price?
Barron's Online asked Credit Suisse derivativ
What to make of the AIG mess?
There's a lot of frustration now that financial services firms are repeatedly hitting up Uncle Sam for more taxpayer money. All these government programs, at some point, seem to be redressing the same wounds. But in the case of AIG specifically, what else is there to do? It would be a catastrophic
The end of the financial supermarket
A deal agreement by Citi to sell a more than 50 percent stake in Smith Barney to Morgan Stanley speaks volumes about the future of Citi. You cannot be a financial supermarket without a wealth management unit. Thus Citi seems to be admitting--finally--that the financial supermarket concept, which h
Government gambling on Citi?
There has been lots of talk about whether the U.S. struck a good deal on behalf of taxpayers when it agreed to yet another intervention to prop up Citi. A column in the Financial Times offers an interesting analogy: The U.S. has effectively sold a put option on Citi. In return for
What to make of the evolving bailout?
We're in uncharted waters, folks, and there is no guarantee that all the financial backstopping and investing the government is doing, on behalf of taxpayers, will work. This is an unsettling position, to say the least.
With the most recent Citi intervention, a new model for bank bailout
