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?"
© 2005-2008 Stephen Clarke-Willson, Ph.D. - All Rights Reserved.