Monday, September 29, 2008
I guess the FDIC will have to do it.
Citigroup will assume the first $42 billion on losses tied to Wachovia’s riskiest mortgages and will pay the Federal Insurance Deposit Corporation $12 billion in preferred stock and warrants. In exchange, the F.D.I.C. will absorb all losses above that amount.
Another question for Mindles. If your tone is rightly indicating you are for the bailout, I'm wondering -- you have always seemed to be anti-government-interference in the markets in the past, so what's different this time? Is it just, if mommy is giving me a cookie, I like her, but if she's making me eat my meat or do my homework, I don't?
Do you feel the government somehow is responsible for the mess, like if had regulated less it wouldn't have occurred, so you want it to clean it up?