Citigroup Inc. (C) is getting ready to nominate four financial-services executives as directors under a plan to revamp the firm’s board, according to a published report last Friday. “Pandit says in memo that Citi profitable during 2009″ Credit is frozen, lending is completely at hold and sudden of all Citi becomes profitable after grabbing tax payers bailout funds ?? What a shame. Citigroup (C) should be allowed to fail. Having heavily and irresponsibly gambled with derivatives (close to $39 trillion), the efforts to fix America with taxpayer money should be directed away from the “black holes” of greed (BofA, JPMorgan included) and into tangible returns…new industry jobs, US infrastructure, etc.
On another tangent:
I am really getting sick of hearing all of the grumblings from those who claim to be “under water” on their homes. The market is what it is and the choices are very clear, get refinancing if you can while continuing to pay or put the keys in an envelope and drop them off at the bank. There is a house down the street that is about to go into foreclosure for being “underwater”. But their “home equity” loans enabled them to buy new cars, pay college tuition and take a lovely trip to Europe over the past few years. They lived high off the hog. And now the 92% of Americans who pay their mortgages should bail them out? They still have their new cars and no college tuition bills to pay and that seems to me to keep them well above the water line.
The banks are in the midst of a financial crisis and their assets — all those mortgage securities and other junk — are doing them no good. Mark-to-market is forcing them to write that stuff to zero and get some real assets, preferably cash, into their coffers. Banks don’t want to accept the truth homeowners have faced about their assets. The banks want to say their assets are worth something even though no one will buy them — at any price. Cheater, Cheater..
If as a homeowner, you’re forced to accept that your house doesn’t have any value, there’s not much you can do about it. That could, change in a few years when housing prices improve, but no bank wants to risk its cash on your housing market’s recovery. And why should they? Yet these same banks (C), (BAC) etc..want to break out the eraser and say that zero isn’t really zero, it’s 50 cents on the dollar. Is it real? As taxpayers who have funded their bailout, why should we risk our cash to find out?
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