Geithner's Toxic Debt Plan So Good, Citi and BofA Can't Wait to Get Started

oooph

Idiots never learn from their mistakes, now do they? This is the mother of all scams!!!!!!!!! Just go to findthelawyer.com and see what the devil has for them very soon. Yeah accounting gimmicks, they should not be able to buy these, conflict of interests?

The only reason banks are buying more of these toxic assets is because in less thasn two weeks when Mark to Market goes away they'll be able to mark the prices up to whatever they want them to be. They have no intention of selling any of it. The Public/Private Geithner plan is DOA.

Bank debt based on derivatives or multiples, not one or two trillion, but ten or twenty, even forty trillion. Plan which saves big banks will bring on inflation in multiples as well..

What's the up side for the tax payers? NONE!!!

Wait a minute ... from all we hear, the market for these assets is frozen, with sellers asking 60-70 cents on the dollar, while buyers are only offering ~30 cents. So how are Citi and BofA supposedly buying these toxic assets on the cheap, if no one's selling? Combined with the fact that this 'news' coming from the NY Post, I'd doubtful.about it's veracity.

Wait a minute ... from all we hear, the market for these assets is frozen, with sellers asking 60-70 cents on the dollar, while buyers are only offering ~30 cents. So how are Citi and BofA supposedly buying these toxic assets on the cheap, if no one's selling? Combined with the fact that this 'news' coming from the NY Post, I'd doubtful.about it's veracity.

Just perfect. Well, wonder what would happen if they put in a clause that said the Govt would not handle and debt purchased in the last six months?

This is a straight-out money laundering operation, from the taxpayers' wallet straight to the banks. The brazenness with which our money is being stolen by these thieves would be astonishing, if I hadn't already learned to expect this from Geithner & Goldman & friends.

This is a straight-out money laundering operation, from the taxpayers' wallet straight to the banks. The brazenness with which our money is being stolen by these thieves would be astonishing, if I hadn't already learned to expect this from Geithner & Goldman & friends.

The Federal Reserve and the government have created so many leveraged situations and with the bailouts so many moral hazards that this thing could come off the rails at any time. The dollar and ultimately the taxpayer will pay the price. This is a bad bad situation caused by government and the central banks who run our economy, everyone else is just actors in it. Now some of these companies are becoming a part of it too through these programs. God help us all.

We're paying enormous amounts to free them from their toxic assets, and they buy more? The anger of the AIG bonuses penetrated the Wall Street bubble, but not far enough apparently. Break up the big banks. Not one more penny until the breakup is announced. What would be really fun, now that they've been this stupid, the toxic asset plan should be amended to limit the purchase price to 10 cents on the dollar. Watch them cry!

Under the Geithner plan, Citi (or other banks with toxic assets) has a strong incentive to lend to a hedge fund or private-equity firm the $19.5 to buy the toxic assets (using Prof. Krugman’s example). Citi and the hedge fund or private equity investor do not mind losing that $19.5. Why ? Citi will benefit from getting rid of the toxic assets with book value of $100, its balance sheet will improve even taking into consideration the $19.5 bad debt. Citi’s share price will rebounce as a result, and the hedge fund which is long on Citi’s shares will make a huge profit from the stock market to offset that $19.5 loss. The entire plan is a charade. Even an economics student like me knows that. Prof. Krugman is absolutely right. The only loser will be the taxpayers.

Idiots never learn from their mistakes...Who are the idiots? I think the government (and ultimately the taxpayers) are the idiots by allowing these banks to buy this garbage using taxpayer money. These bankers a geniuses. What a deal...run the business into the ground, get a taxpayer bailout and then capitalize on it by buying more garbage that they can then inflate the price of and sell back to us, the taxpayers at a profit. Paulson was a complete idiot and now we have Geithner who doesn't have a clue! And these are the guys that are looking out for us?

Guess what, treasury is going to partner with you 1:1. FDIC is going to give you non-recourse loan 6:1. So, you can come out even if 1 out 7 loan comes thru @50% face value. The taxpayer can eat the 5/7 loan loss. I predict these banks will bid on their own loan and shift the loss to taxpayers.

Guess what, treasury is going to partner with you 1:1. FDIC is going to give you non-recourse loan 6:1. So, you can come out even if 1 out 7 loan comes thru @50% face value. The taxpayer can eat the 5/7 loan loss. I predict these banks will bid on their own loan and shift the loss to taxpayers.

There's always a new scam and scheme going on somewhere. What's that saying, "Good guys finish last?"...

Just another bad plan from a Bad Administration

They are going to use govt money to buy assets from themselves and use the leverage and the guarantee and the govt money to turn a crushing debt position into making money off the debt position..This is what happens when you invite govt in to the real world....they get undressed every time....

It is good to see that someone (lemmax) is looking at the source of the news. And did they quote what price was being paid? Oh well, just another case of NewsCorp journalism