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Citi Rapes Taxpayers; Nobody Seems to Mind

Posted By on February 27, 2009

In the continuing saga of America’s biggest too-big-to-fail Fail Boat – Citibank – it appears the US is about to give up the only value it’s gotten out of the billions it’s shipped to Citi so far – the “preferred” part of the preferred shares it got a few months ago.

The plan is to exchange, or “convert,” the old shares into common stock.  The difference being that the old shares paid an actual dividend.  The new ones pay squat.

In order to make sure we don’t wind up owning “too much” of Citi, however, the goverment’s plan involves overpaying for whatever shares it gets.

Unfortunately (for us) we’ve already spent enough on Citi to have bought the company outright, several times over.  On top of hundreds of billions of dollars of contingent liabilities we’ve guaranteed on their behalf.

Anybody else long for the days when welfare queens were people who got too many food stamps?

Cactus (Angry Bear) says the banks ought to be required to include that phrase in their names from now on.

I don’t know.  “Welfare Queen Goldman Sachs” does sort of has a ring to it.

I mean, I know it won’t stop their executives from collecting 8-figure bonuses while trashing the economy and bankrupting the companies they work for… but at least it might look a little embarrassing on their resumes.

By the way, you know what those bonuses are for, right?  They’re called “retention” bonuses.  It’s so they don’t run off and… bankrupt somebody else’s bank… I guess.

That last part was not a joke.


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