In tonight's WSJ:
While the discussions could fall apart, the government could wind up holding as much as 40% of Citigroup's common stock. Bank executives hope the stake will be closer to 25%, these people said.
Under the scenario being considered, a substantial chunk of the $45 billion in preferred shares held by the government would convert into common stock, people familiar with the matter said. The government obtained those shares, equivalent to a 7.8% stake, in return for pumping capital into Citigroup.
So $45 billion of TARP money, and the ring fencing of $300 billion of bad assets was just not enough for the bank that never sleeps.
Except for the board of directors, and the executive team, who appear to have never been awake!
Friday morning, Obama spokesman, Robert Gibbs, was condescendingly ripping into Rick Santelli, and then later in the day had this to say about the banks:
"This administration continues to strongly believe that a privately held banking system is the correct way to go, ensuring that they are regulated sufficiently by this government."
When Clinton was interviewed by Jim Lehrer about Monica Lewinsky he said, "there is no improper relationship."
Clinton had his "is" and "was" and now Gibbs has his "is" and "was" too!