Nation’s banking troubles are many times more severe than the authorities are admitting. Six of America’s Largest Banks at Risk of Failure
Citi was indeed in talks with the US government in a deal which could result in a 40% stake in the failing bank. Today, the deal was finalized and the US government will convert it’s preferred shares into common. Dilution of common shares are expected to be as high as 75%
Citigroup (C) and Bank of America (BAC) won’t live to see May. The government will take them over within the next 60 days. The announcement may come as soon as tomorrow evening
Right now, after recent close calls with instant death, these two megabanks are on life support, receiving massive transfusions of government capital. But they’re still hemorrhaging, and no one in Washington has found a cure.
A new Citigroup scandal is engulfing Robert Rubin and his former disciple Chuck Prince for their roles in an alleged Ponzi-style scheme that’s now choking world banking
Barack Obama’s picking the very folks who helped get us into this financial mess to now lead us out of it
.The deregulation pushed though during the Clinton years ended transparency in banking
Citibank is (or at least until recently was) the largest bank in the world. Its parent – Citigroup – was the largest financial services companies in the world. Christopher Whalen, head of Institutional Risk Analytics predicts that “Citi will be controlled by the U.S. government by next year, and that the next logical step will be to break up the bank and sell the assets.”
Accounting changes could force US banks to take thousands of billions of dollars back on to their balance sheets in the coming months in a move that is likely to curb further their lending and could push them into new capital raisings, analysts have warned.
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