FLASH: Paulson's "Super SIV Deception Plan" dead - Citigroup reverses course and takes $49 billion in hidden mortgage trash onto their balance sheet
Hank Paulson's "Super-SIV" Deception Plan has now gone officially bust, with Citigroup pulling the plug on this game last night and deciding (finally) to put the cancer on their books.
This shameful attempt by Hank Paulson to conceal and deceive, avoiding a "mark to market" on depreciating assets so insiders could continue to loot their companies, simply couldn't survive in today's world of blogs and 24-hour media. Maybe back in the good old days at Goldman you could've gotten away with such blatant deception. But no more.
HousingPANIC now calls for the resignation of Hank Paulson, and a Senate investigation of his activities at Goldman Sachs in relation to CDOs and SIVs, and also his recent deceptive and corrupt activities while at Treasury. Everything this guy touches is blowing up in his face now - the Super SIV Deception Plan,the thoroughly discredited Housing Gambler Bailout Plan, and most importantly the US dollar itself.
We have a fox in the henhouse HP'ers. Time to root him out.
From the WSJ
Citigroup Alters Course,Bails Out Affiliated Funds - Taking on $49 Billion Of Assets Further Dents Banking Giant's Capital
Citigroup Inc., bruised by mounting losses, is bailing out seven affiliated investment entities, bringing $49 billion in assets onto its balance sheet and further denting its depleted capital base.
While Citigroup's action may ease uncertainty about the future of its SIVs, it may be the death knell for an industrywide effort to create a rescue fund for the struggling vehicles.
Helping to organize the so-called super-SIV rescue fund was one of Treasury Secretary Henry Paulson's first responses to the market turmoil, and was controversial from the start, with some critics saying it essentially represented a bailout for the SIV industry. The banks involved dismissed that notion, saying that it would merely provide one more option for SIVs that were in trouble.
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