SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Politics : Politics for Pros- moderated
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
From: LindyBill10/10/2009 8:58:32 PM
1 Recommendation   of 793895
 
Obama Adminstration Puts Politics Ahead Of Bailout Recoup!

By Founding Blogger on WSJ

Now that the Progressive government has made the US tax payer owners of Citigroup, one might hope that these same progressives might try to turn a profit with our investment. They promised as much when they began nationalizing the business.

Well, hope springs eternal, but that had no effect on the governments decision to force a fire sale of one of the only profitable units at Citi, named Phibro, for purely political reasons.

How Occidental Scored Citi Unit Cheaply

Here comes the money quote:

Phibro generated roughly $667 million of revenue last year, just a sliver of Citigroup's total revenue of $53 billion. But the trading operation was one of the few profitable businesses at the bank, which posted a net loss of $28 billion. It won't be easy for Citigroup to replace the reliable returns it got from Phibro.

And why did Citi fire sale one of its only profitable groups? Because the government didn't want to face angry Progressives when it came time to pay the person responsible for the profit, so instead of honoring the tax payers, they honored the Tides-SEIU-ACORN alliance.

Thanks President Peace Prize. Don't hold your breath for the prize in economics.

This is the price of pitchfork politics.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News