Citigroup to pay $7 billion in subprime mortgages probe

[beetcoin]

i think it's a win/win for people who run the banks, really. if the loans don't fault, good.. you can get high interest rates from subprime mortgages. if everything crashes, that hurts.. but no worries, the government will step in and help out.

Actually you might have a point I did post that they only had to pay 7 billion for the Subprime mortgage Crisis
Forgot to check how much citigroup got in a bailout for comparison

But its actually win win win
If people default they get all the stuff they have and its on fractional reserve anyway so it has more value in tangible assets than it does on a computer.

http://www.reuters.com/article/2008/11/24/us-citigroup-idUSTRE4AJ45G20081124

Back in the time machine

(Reuters) - The U.S. rescued Citigroup Inc, agreeing to shoulder most losses on about $306 billion of the bank's risky assets, and inject new capital, bolstering investor hopes that the government will support big banks as the economy sinks into recession.

In exchange here is 7 billion back
Government its cool now you paid your debt to the USA

----
In return, Treasury and the FDIC will get $27 billion in preferred shares, of which $7 billion are a fee that Citigroup pays in exchange for the government guarantee.

(Not sure if they sold the shares though but if not 500% over their buy in price)
http://www.marketwatch.com/investing/Stock/C?countrycode=US

man, 306 billion dollars.. 7 billion pales in comparison. that's basically interest money for 1 year. the way the real works is that it's socialism for the corporations, and capitalism for the people who are not corporations.

[Swordsoffreedom]

man, 306 billion dollars.. 7 billion pales in comparison. that's basically interest money for 1 year. the way the real works is that it's socialism for the corporations, and capitalism for the people who are not corporations.

Yep socialism for the corporations who pay it back in their political campaign war chest and jobs after the leave government (Good old cronyism)
And capitalism for the poor.
Under the argument of contagion of course because after all they are too big to fail.

I found the thing I was looking for so to add a guilty bonus to that 7 billion
The government said in 2010 that its cool we will leave now and let you go and make the same mistakes again since we don't want to be seen holding bank shares in the financial system in exchange let us print more money guys  

Government sells remaining shares in Citigroup; investment to net $12 billion total profit for taxpayers

http://www.washingtonpost.com/wp-dyn/content/article/2010/12/07/AR2010120700091.html
When it disposes of its remaining Citigroup shares, the Treasury said, the average selling price for its shares will be $4.14 apiece, up from $3.25 when the government obtained its stake. Citigroup's stock closed at $4.45 on Monday.

http://online.wsj.com/news/articles/SB10001424052748704156304576003884177348202
The Treasury's sale of 2.4 billion Citigroup shares was priced at a 10-cent discount to Monday's closing price of $4.45 a share. With the government's average cost at $3.25 a share, Treasury officials decided to accelerate the sale timetable after recent gains in the stock price meant the cost had already been recouped in sale proceeds, repayments and dividends, one of the people familiar with the matter said.

"With all the risk already off the table," the person said, "there was no reason not to go ahead with this." Counting Monday's sale, Treasury's sales proceeds averaged $4.14 per share.

(Note there was a 1:10 Stock Split in 2011)
https://ca.finance.yahoo.com/q/hp?s=C&a=00&b=3&c=1977&d=06&e=19&f=2014&g=m

So its more like 41.40 per share

So 19 billion for a 306 billion dollar debt