Read a little. Learn a lot. • Tightly-written news, views and stuff • Follow us on TwitterBe a Facebook FanTumble us!

07 Dec 2010 23:14

tags

Biz: Did we really profit off Citi, or are we still in the danger zone?

  • So assuming that the banking sector doesn’t suffer another crisis in the next two years, taxpayers might be okay after all. Indeed, even if there is some loss on these guarantees, the assets would have to be pretty rotten to eat up the government’s entire $12 billion profit on the equity sale.
  • The Atlantic associate editor Daniel Indiviglio • Offering some more context on the Citi bailout numbers. While the U.S. no longer owns any shares in Citi, we do have other stakes in the company – most notably, we’re still backing a lot of their debt right now due to a program called the “Temporary Liquidity Guarantee Program,” which isn’t as easy to acronym as TARP. But by the end of 2012 at the latest, we’ll be off the hook for that. Still, though, the fact that we might make any money off of TARP is impressive. “Citi was viewed by many as the big bank with the most serious problems,” Indiviglio notes, suggesting that the profit would prove that their bailout in 2008 was warranted by panic and general FUD, not “too big to fail”-type concerns.  source

20 May 2009 10:25

tags

Biz, Politics: A quickie defense of credit card companies facing regulation

  • After everything is taken into account, a rigorous, highly tested credit recommendation pops out of their risk management engine. They literally have math and statistics PhDs who are in charge of this stuff. Congress seeks to prevent such complex analysis.
  • The Atlantic columnist Daniel Indiviglio • On the reasons credit card companies policies often lean towards predatory practices, and why Congress’ plan to kill those practices is no good. Indiviglio says that the unintended consequence of the the legislation currently going through Congress is that it will leave fewer people with credit. May we make the argument that this might actually be a good thing? • source