Bailout, Version 3 - Floyd Norris Blog -

The quote below is from the "Bailout, Version 3" comments - which are generally interesting and surprising good - does Floyd Norris moderate them?

"I just finished reading the term sheet — and I don’t get it. How is this not the biggest rip-off in history?

Citibank is getting a $266 billion *non-recourse* loan for its non-performing assets (the $306 billion minus about $40 billion that Citibank has to cover itself). It thus sounds like we’re buying the vast majority of Citibank’s bad paper at face value.

In other words, it sounds like a compulsory gift of $2,600 from each household in America, to Citibank’s shareholders and executives. Will we at least get a thank you note?"

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