Eight Percent
Today, the federal government announced a new bailout deal for Citigroup. This is getting ridiculous. Here is Robert Reich’s take on it:
This is not a particularly good deal for American taxpayers, but it is a marvelous deal for Citi. In return for all the cash and guarantees they are giving away, taxpayers will get only $27 billion of preferred shares paying an 8 percent dividend. No other strings are attached. The senior executives of Citi, including those who have served at the highest levels in the US government, have done their jobs exceedingly well. The American public, including the media, have not the slightest clue what just happened.
At what point do we stop this? Businesses fail. That is what happens. Let them fall into bankruptcy under the new bankruptcy laws they helped get passed earlier this year. And yes, I know the new laws really affect individuals filing, not corporations, but it fun to daydream.
