Old 02-21-2009, 02:06 PM
Senior MemberCaptains Club MemberPLEDGER
Join Date: Dec 2004
Location: Not in Texas
Posts: 10,213
Default Help Me Understand This Bank Bailout Thing

As is being reported by Reuters:

... Through the close, Citigroup's market capitalization had shrunk to $10.6 billion, making it worth less than asset administrator Northern Trust Corp (NTRS.O). Bank of America, the largest U.S. bank by assets, was worth $24.2 billion.

Both banks have taken $45 billion of capital from the federal government since October, and gotten a federal backstop on losses related to toxic assets. ...


CitiCorp worth $10.6-billion + BofA worth $24.2-billion = a combined worth of $34.8-billion.

How can the two banks be worth $34.8-billion when they got $45-billion of our tax dollars??? Where did that missing $10.2-billion go -- who got it? And didn't those two banks have any assets worth anything at all?!? Where did their value go?

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