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Your taxes at work????? Citicorp PR down the tubes?
Posted by: samintx
Date: December 01, 2008 08:24AM
From Yahoo business


"Opinion Today's Outrage: Citi Takes Cash to Spain
12/01/08 - 09:07 AM EST

, C (Cramer's Pick) Glenn Hall

Thanks for nothing, Citigroup (C Quote - Cramer on C - Stock Picks).


UPTreasury Secretary Henry Paulson gives the U.S. bank $45 billion in taxpayer money to keep it afloat and get it to pump some money into the emaciated U.S. lending system and what does Citi do?

Buy a Spanish highway operator.

Yes, you heard right. Citigroup agreed to take over Spain's Itinere from Sacyr Vallehermoso in a deal valued at about $10 billion, which includes about $6.3 billion in debt that Citi will take on.

Just what Citi needs: more debt.

Of course, Citi officials will tell us this is good debt, unlike the $306 billion in risky assets U.S. regulators agreed to backstop last week as part of a $20 billion taxpayer-funded cash injection to shore up the bank. That's on top of the $25 billion in federal bailout money Citi received earlier this year.

U.S. taxpayers are definitely getting a great return on that investment.

I'll bet Paulson just can't wait to hand over another $10 billion to Citi when the bank complains that the global recession is eating into the tolls it thought it would be collecting in Spain. "

Citicorp is selling a big chunk of their Japanese business but buying into SPAIN with our tax dollars????? I want to hear the logic.



Edited 2 time(s). Last edit at 12/01/2008 08:26AM by samintx.
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