SIGTARP Report.pdf

CitiOIG.pdf
Preview of SIGTARP Report
🔗 Source: online.wsj.com
📊 Size: 3.42 MB
📄 Pages: 77 pages
⬇️ Downloads: 41

Summary

The US government provided extraordinary financial assistance to Citigroup in November 2008, including a $20 billion capital infusion and asset guarantees, to prevent its failure and potential catastrophic damage to the economy. The government's plan achieved its primary goal of restoring market confidence in Citigroup, and it controlled the risk of government loss on the asset guarantee. The government incurred no losses and even profited on its overall investment in Citigroup by more than $12 billion. However, the determination of Citigroup's systemic significance was ad hoc, and the absence of objective criteria raised concerns about fairness and consistency. The government's actions also contributed to increased moral hazard, as Citigroup remained an institution that is too big and essential to the global financial system to be allowed to fail.

Description

The US government provided extraordinary financial assistance to Citigroup in November 2008, including a $20 billion capital infusion and asset guarantees, to...

Technical Information

  • File Format: PDF
  • File Size: 3.42 MB
  • Pages: 77
  • Language: EN
  • Total Downloads: 41
  • Last Updated: 1 week ago

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