Markets cheered up by US's bail-out to Citi-bank!

Markets cheered up by US's bail-out to Citi-bank!
Nov 25, 2008 01:59
YVONNE Points: Join Date: Nov 29, 2004 Status: offline	The US government has agreed to bail out Citi-bank. 20 billion dollars will be injected to Citi-bank. At the same time, the government will stand behind some $306bn in Citi's domestic assets. According to the deal, Citi need to be responsible for the first $37bn in losses recognised on these assets. As for the remaining 269 billion, the government will bear 90 percent of any losses. Citi-group's shares surged about 60 percent yesterday. The global markets also were cheered up. The London FTSE 100 climed 9 percent. The DAX Index in Germany climed up 10 percent and the CAC 40 Index, 9 percent increase. However, there seems to be a problem: US government gave the green light to Citi-group. What about the other banks? Can they get the same treatment from the government?

Nov 25, 2008 01:59

YVONNE
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Join Date: Nov 29, 2004
Status: offline

The US government has agreed to bail out Citi-bank. 20 billion dollars will be injected to Citi-bank. At the same time, the government will stand behind some $306bn in
Citi's domestic assets. According to the deal, Citi need to be responsible for the first $37bn in losses recognised on these assets. As for the remaining 269 billion, the government will bear 90 percent of any losses.

Citi-group's shares surged about 60 percent yesterday. The global markets also were cheered up. The London FTSE 100 climed 9 percent. The DAX Index in Germany climed up 10 percent and the CAC 40 Index, 9 percent increase.

However, there seems to be a problem: US government gave the green light to Citi-group. What about the other banks? Can they get the same treatment from the government?

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