The TARP payments will result in a roughly $5.1 billion loss. Citigroup will also terminate its loss-sharing agreement with the government on $301 billion of its riskiest assets. Canceling about $1.8 billion of trust preferred securities linked to the program will result in a $1.3 billion loss, the company said.
Citigroup fell to $3.86 in New York trading at 8:03 a.m., down from its $3.95 close on Dec. 11. The stock has tumbled 41 percent this year, valuing the lender at about $90 billion.
“It’s GREAT news!” LOL, let me translate. Their massive bonuses and paychecks based on nothing aren’t big enough, so their top employees are having difficulty affording their house in the Hamptons, their yacht, their second and third beach home, their fleet of Ferraris, AND their corporate jet. Soooo, they need the ability to crank out more paper, diluting current shareholders while getting the Treasury off their backs.
But here’s the deal with this deal, it’s the same as with the others, especially Bank of America… what they are doing is paying back the tarp and then turning right around and borrowing the same money right back from the Treasury at little to no interest as it’s subsidized from the Treasury, and in that way they still have funds from the people without all the strings attached, and the people are none the wiser, all they see is the front page headline – “Citi Repays the TARP!”
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