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Financial Crisis of 2008 (view source)
Revision as of 12:14, December 7, 2009
, 12:14, December 7, 2009→Largest bank rescued: update
Despite two federal bailouts Citigroup is still wobbly. It holds $20 billion of mortgage-linked securities that have been marked down to between 21 cents and 41 cents on the dollar. It has billions of dollars of giant buyout and corporate loans of dubious value. And it also faces a potential massive losses on auto, mortgage and credit card loans as the economy worsens.<ref>Eric Dash and Julie Creswell, "Citigroup Pays for a Rush to Risk," [http://www.nytimes.com/2008/11/23/business/23citi.html?ref=business&pagewanted=all ''New York'' Times,’’ Nov. 22, 2008]</ref>
Despite two federal bailouts Citigroup is still wobbly. It holds $20 billion of mortgage-linked securities that have been marked down to between 21 cents and 41 cents on the dollar. It has billions of dollars of giant buyout and corporate loans of dubious value. And it also faces a potential massive losses on auto, mortgage and credit card loans as the economy worsens.<ref>Eric Dash and Julie Creswell, "Citigroup Pays for a Rush to Risk," [http://www.nytimes.com/2008/11/23/business/23citi.html?ref=business&pagewanted=all ''New York'' Times,’’ Nov. 22, 2008]</ref>
By the end of 2009 most big banks were in much better shape and the Treasury expects to recover all but $42 billion of the $370 billion it lent to ailing companies, with the portion lent to banks actually showing a slight profit. Meanwhile over 120 small and medium banks have been shut as insolvent; in most cases the FDIC picks up the losses and another bank takes over the operations and branches.<ref>Jackie Calmes, [http://www.nytimes.com/2009/12/07/business/07tarp.html?_r=1&hp=&adxnnl=1&adxnnlx=1260187849-MV96Nnjzom3OwAchzjIqrg "U.S. Forecasts Smaller Loss From Bailout of Banks," ''New York Times'' Dec. 6, 2009] </ref>
==Crisis in Auto industry==
==Crisis in Auto industry==