Government reportedly involved in Citi deal

[IDemo]

Would buy up assets to create good bank/bad bank structure

Reuters -updated 11 minutes ago

Citigroup Inc is looking at putting risky assets in a “bad bank” — a step to reassure investors that the rest of its assets were safe, the Wall Street Journal reported on Sunday.

The “bad bank” might take on some of Citigroup’s more than $1.23 trillion of off-balance sheet assets. Citigroup might bear the initial losses on the assets, and the government might cover losses beyond a particular threshold, the newspaper reported, citing people familiar with the matter.

U.S. financial markets are waiting for some sort of Citigroup announcement this weekend, and if nothing happens, the bank’s stock is likely to plunge further on Monday, analysts said.

Citigroup’s shares fell 60 percent last week to $3.77, spurring the bank’s management to talk to the U.S. Treasury and the Federal Reserve about its options.

http://www.msnbc.msn.com/id/27877195/

[IDemo]

1. "I'm sorry, ma'am. This is the bad bank. There will be no free toasters."

[sarcasmo]

2. Don't worry Citigroup, you don't have Union employee's, the Government will help you out.