[quote=“Dr. McCoy”][quote=“hardball”]So, the Obama administration made some money for the government. That’s cool, but I’d rather not see the US government investing in individual companies, especially those in dire need of regulation. Why not invest in MO? The dividend is great and the long tern prospects good.
AFAIK, banks have done very little to change the practices that essentially caused the financial meltdown, and are actually right back doing what they were doing before the crash.[/quote]
Was it the Obama administration or was it the Bush administration?[/quote]
I don’t think the Bush administration made ANY money for the government.
(Oh, I see what you mean. Well, here’s an article from 2008…so looks like Bush initiated it…and look at the deal…[quote]
In return for the latest intervention, the government will receive a larger stake an additional batch of preferred shares - $20 billion for its direct investment and $7 billion as compensation for the loan guarantees. Citigroup will pay an 8% dividend rate on those shares. <<the yield now for C is “Div & Yield: N/A (N/A)”>>
In addition, the government will get warrants, or the right to purchase $2.7 billion worth Citigroup shares in the future.
The government will impose restrictions as well. Citigroup will be prohibited from paying out a dividend of more than a penny per share for the next three years and will face limits on executive compensation.[/quote]…hardcore deal for sure. But Obama sold it…so he gets the Win. )
Here’s a good book that explains some of it:
amazon.com/Big-Short-Inside- … 0393072231 *
- same guy who wrote moneyball actually.
Citigroup, which has posted more than $100bn in write-downs, required three government rescues in 2008 and 2009.
At Citigroup’s opening share price of $4.39 on Monday, the Treasury’s stake would be worth just over $33bn, giving an $8bn profit to the US taxpayer.
The bank has received a total of $45bn in bail-out money from the Treasury’s $700bn Troubled Asset Relief Program (Tarp). It was the largest amount given to a bank (and was equal to the sum given to Bank of America).
Citigroup was given $25bn in return for 7.7 billion in shares, and was loaned another $20bn in two tranches. This $20bn was repaid in December. [/quote]
From the OP’s post.