Monday, November 24, 2008
Someone smarter and wiser than me will have to explain what makes Citigroup more important than the Big Three Automakers?
Last week, the CEOs of Ford, G.M. and Chrysler received a chilly reception from Congress for a relatively small request for a $25 billion dollar bridge loan that would allow Detroit to remain operational into 2009. Sen. Majority Leader Harry Reid gave the Big Three Automakers a Dec. 2 deadline to present a plan that shows a path to survivability and raised the possibility their request would be revisited when the Congress meets on Dec. 8 and possibly approve a rescue.
Meanwhile, it was announced late Sunday night that Federal regulators approved a radical $306 billion plan for Citigroup whereby the government could soak up billions of dollars in losses at the struggling bank through a series of loans and direct investments of residential and commercial real estate loans and certain other assets. Citigroup is widely viewed, both in Washington and on Wall Street, as too big to be allowed to fail.
Citigroup employs approximately 358,000 around the world.
Ford, G.M. and Chrysler employ approximately 3 million U.S. workers and as many as one-in-ten American jobs are directly or in-directly tied to the Big Three Automakers.