Word: city
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Dates: during 2000-2009
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...Over the last several days, the incoming administration has moved toward the idea of creating one federal agency which would have the purpose of taking most of the toxic assets off bank balance sheets. Since the figure at Citi is probably at least as large as the $300 billion pool that the government is guaranteeing, the combination of bad paper from Bank of America, Wells Fargo (WFC), JPMorgan (JPM), and the next tier of large US banks is almost certainly close to $1 trillion...
...Things did not work out that way. Citi announced that it had lost $8.3 billion last quarter. There was no confidence in management. The general belief that the banking system is so badly broken fueled the fear in the government and the public that matters were going to get even worse. (See pictures of the Top 10 scared traders...
...will step in and do what it did for Bank of America (BAC) as its Merrill Lynch unit posted a $15.3 billion loss in the fourth quarter. Citi will also get a program which will guarantee the value of certain bad assets and keep the bank from failing...
...Under the government's aid program for Citi the government will share losses on over $300 billion in assets, with a term on the guarantees up to ten yeas. Citi will immediately separate its banking unit from its brokerage and money management units. There is simply too much risk in the investment operations to keep them married to a commercial bank...
...Citi will have access to loans from the Federal Reserve in addition to the loss sharing program. This federal support is based on extremely complex rules, but the net of it is that the bank will have access to the cash it needs to keep from failing...