Investing Blog

Wall Street was happy that the Federal Government hopped on board to help out Citigroup. The Dow was pushed upward a few hundred points but the end result for taxpayers is far less outstanding.

The deal was struck so that the US Government through the TARP program, the Treasury and eventually the Federal Reserve would back up the $306 Billion worth of mortgages and other assets that Citi holds. The TARP program gave Citigroup $20 Billion in exchange for $20 Billion in preferred stock, good deal there. Read more…

Mutual Funds, Round Up C

A Citi Bailout was expected as its stock nose dived throughout the week. Starting with a value of $9.36 on Monday, the stock slowly trickled down to a close of $3.77 per share. On Sunday night it was released that a bailout of Citi was being discussed between Washington and Citi.

This bailout will be one of the most interesting because it is the first following the change in the TARP program. After Paulson changed the gameplan to buying stock in banks rather than buying troubled assets, it will be interesting to see how the government and market respond. Read more…

Investing C