Tuesday, December 7, 2010

US Profits On Citibank Bailout, Ireland Prepares For Massive Austerity Cuts

$12 Billion Profit vs planned $6 Billion In Spending Cuts

USA Announces A $12 Billion Profit On Citibank Securities 

Citigroup received $45 billion in taxpayer support late in 2008 in one of the largest bank rescues as the government struggled to contain the worst financial crisis to hit the country since the 1930s.
"Citi is pleased that the U.S. Department of the Treasury has finalized plans to exit from its remaining holdings of Citigroup common stock. We are very appreciative of the support provided by the Treasury during the financial crisis," Citigroup spokesman Jon Diat said in a statement.
"This is a milestone for the government and for Citigroup," James Angel, a Georgetown University professor of finance, told The Wall Street Journal. "It signals the company has been fully privatized and that their parole is over."
Linus Wilson, a finance professor at University of Louisiana at Lafayette, told the newspaper the government's sales strategy had been a success. "They took a risk by not selling early or selling too much at once," he said.

Ireland Joins The Rest Of Europe In Announcing Austerity Cuts To Remain Fiscally Viable As A Nation

DUBLIN — Ireland's deeply unpopular government will unveil a record austerity budget Tuesday, inflicting more pain on voters in an attempt to impress the IMF and EU and ensure quick access to their rescue funds.
Prime Minister Brian Cowen is expected to get his fiscal plan through parliament, averting the risk of a snap election that would have plunged the country into an even deeper crisis and compounded contagion in the euro zone.
But the 2011 budget, which will squeeze 6 billion euros ($8 billion) out of an economy still smarting from a prolonged recession, marks the beginning of the end for Ireland's government.
Cowen, the most unpopular leader in recent Irish history, has promised to call an election once the legislation underpinning the budget is passed, likely to be early next year.

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