Citigroup: Too big to fail? Is any corporation off the table?

Pandit: The unmasked bandit

Federal regulators have agreed to backstop about $306 billion of Citicorp’s riskiest assets to bolster the staggering banking giant, in yet another in a growing list of radical efforts to shore up confidence in troubled financial markets.

Vikram Pandit, Citi’s chief executive officer, welcomed the action. “We appreciate the tremendous effort by the government to assure market stability,” he said in a statement.

Mr. Pandit should be thanking the American taxpayers.

USA Today says Citigroup is such a large, interconnected player in the global financial system that it is seen by Washington policymakers as too big to fail. The company has operations around the globe in more than 100 countries.

Read the AP report here.

2 Responses to Citigroup: Too big to fail? Is any corporation off the table?

  1. RA says:

    I believe this may be the fourth bailout Citi has received over the last 25 years. The market has voted. Repeatedly.

    Globalism – a system by which U.S. taxpayers bail out underperforming multinational corporations that lay off workers in the U.S. and offshore-outsource their jobs to India.

  2. NightOwl says:

    Interesting, RA. I didn’t know that! Thanks for the info.