The banks win again!!!

[TwixVoy]

And people on DU cheer blissfully unaware they are getting screwed yet again.

So Citi executives (like BofA) were going to suffer compensation limitations after they fu**ed up royally and nearly brought down the entire country.

So they say "Shit we need to find a way to pay back this cash so we can get our fat bonuses!!!" So guess what? They SELL their own stock which has been massively inflated thanks to all the shares bought by YOU. Don't think you own any C shares? Well if you have a 401k, mutual fund, even a freaking bank CD the people who manage that money PROBABLY invested in at least some C shares with that money.

So they sold those shares that were bought with YOUR money, and "paid back" TARP. Now they get tons of cash bonuses!!!!

And people on DU sit around glad they "paid back" TARP.

These people play off the masses gross ignorance of exactly what they did to "pay back" TARP and exactly WHY they did it. And the people are glad.

Damn I wish I could go back 40 years and start over as a banker. Here I was wasting my time in honest work.

[alcibiades_mystery]

1. In what universe are shares of C "massively inflated"?

C is at $4. It was probably at $30+ when these options were paid, if not higher. Unless these options are premised on C's low of $0.97, it's a massive loss for anyone selling C.

[TwixVoy]

2. Yes, that is MASSIVELY INFLATED buddy

If it wasn't for YOUR TAX DOLLARS that stock would be at ZERO. THAT is the true value of Citi minus tax payer funds.

Here is a good article explaining exactly what they did so you are capable of understanding it: http://finance.yahoo.com/tech-ticker/article/389945/Citigroup-Out-from-Under-TARP-Is-This-Really-%22Good%22-News;_ylt=AlVAmVXCjhgAApStMh9vln.7YWsA;_ylu=X3oDMTE1NHRmYTNqBHBvcwMzBHNlYwN0b3BTdG9yaWVzBHNsawNjaXRpZ3JvdXBvdXQ-?tickers=C,BAC,XLF,SKF,FAS,FAZ,WFC&sec=topStories&pos=1&asset=&ccode=

[alcibiades_mystery]

3. Yes, iyt would be at ZERO if it wasn't for the bailout

There would also be no money in circulation and we'd all be bartering. The TARP was unpleasant and unfair, but utterly necessary.

I am fully capable of understanding all aspects of finance. There would be no economy had the financial system spun into the abyss.

[TwixVoy]

4. Now you are shifting arguments

No shit there would be no economy had all these mega banks gone under. Where did I ever say that wouldn't be the case? My point was people are cheering this when they paid back TARP with other peoples money so they could get multi-million dollar bonus cash.

Here is another thing you fail to understand - TARP didn't save these banks, it simply delayed the inevitable. We are looking at a MAJOR currency crisis now within the next 1-2 years... and when that happens a LOT of these banks will fail anyway and it will seriously screw with every day American life. Of course you along with 99% of the rest of the country are going along thinking TARP saved us, and have NO idea what is going on in the currency markets right now. I suspected 1-2 years from now you will be one of the first ones demanding to know what happened.

[dionysus]

6. wow, boy am i glad you're in that elite 1% so you can explain it to us proles to help us understand

what would we do without you...
:rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl:

[dixiegrrrrl]

7. Twix is correct, actually.

And some very experienced people agree with what she said.
Even Greenspan said that "the Fed is out of ammunition" to change the economy.

[alcibiades_mystery]

8. Well

I get that you're doing this whole "you don't understand" thing as some kind of sly insult. It's childish and you should stop. Make your argument honestly.

As I see it, you confuse several issues. Your argument would only make sense if Citi was doing a huge equity issue (at, say, $45 billion) directly to the Treasury. But even in your argument, you cite PRIVATE buyers of equity (to wit, "401k, mutual fund, even a freaking bank CD,") and don't demonstrate any new issue (although these are surely in the works). In failing to distinguish public ownership of the stock and private ownership of the stock, your argument is just a mishmash of confusions. Yes, it's my money if my 403b plan purchases C at $4 (assuming a new issue of equity or Citi selling stock it currently holds) and Citigroup turns around and funnels that money directly back to Treasury, but it wouldn't be taxpayer money. Now, certainly, the taxpayer money kept Citigroup a going concern (and you say this was appropriate), but paying back TARP based on their current share price (supposing this is even happening) is a little different.

Now, we can have an honest and respectful conversation, or you can keep on with your insults. I'm not sure I'd want to participate in the latter.

[Greyhound]

5. That pretty well sums it all up.

They took all we had and are now taking all we can borrow. Next comes the "I think it's time we started seeing other people" speech (more likely a text message).

[Tierra_y_Libertad]

9. It's from the P.T. Barnum School of High Finance. Guess who the suckers are. K&R

[inna]

10. And don't forget that they were handed out literally MULTIPLE TRILLIONS, not just the measly $700 bi

billion in TARP. (Although if one listens to the M$M propaganda, it's easy to make an assumption that bailout is limited to $700 billion, NOT multiple trillions.)

KR for the OP.