What's $306 billion between friends?
The U.S. government agreed to a $306 billion rescue plan for Citigroup Inc, agreeing to shoulder some losses from toxic debt in the latest attempt to bolster a financial services industry in turmoil. Citigroup's package may also prove a template for other banks that are expected to face growing losses as economies worldwide sink into recession.
A "template for other banks?" Good Lord, how much are we (the taxpayers) going to have to fork over to rescue the banks?
I suppose the bottom line is that the government is the lender of last resort. Perhaps this is what it is coming down to. But who gets to decide who goes under and who doesn't?
The financials make up about 20% of the SP500. At least they used to. I imagine this would have a positive bump for that sector and maybe the market.
Futures up a bit tonight.