Monday, November 24, 2008

Government rescues Citigroup

I know the election is over but someone should hold McCain, President Bush, and others accountable when they said the "fundamentals of the economy are strong". It shouldn't be a situation where people can just say that the campaign is over, or things change. They were totally wrong and should have no credibility unless they tell us how their analysis will change in the future.

U.S. rescues giant

Reporting from Washington -- The federal government rushed to the aid of faltering banking giant Citigroup Inc. late Sunday night, agreeing to invest $20 billion more and accept the lion's share of losses on more than $300 billion worth of the firm's troubled mortgage-backed assets.In the largest single rescue effort thus far in the current financial crisis, the Treasury Department, the Federal Reserve and the Federal Deposit Insurance Corp. will shoulder 90% of the losses on most of a $306-billion portfolio of toxic mortgages and related securities.

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