Bailout Watch 457: Bailout Nation Jumps the Shark
Bloomberg reports that Citigroup (bailout bill to date: $45 billion) could team up with GM and Chrysler ($17.4 billion so far not including aid to finance units) to distribute the $5 billion recently allocated to the dead-alive auto supplier sector. This irony-free revalation comes courtesy of an Original Equipment Supplier Association document leaked to Bloomberg. Citi would act as the “third-party servicer” for the program, which guarantees suppliers’ accounts receivable “no matter what happens” to the automaker that promised to pay for the parts. Suppliers will have to pony up two percent of the receivable to qualify, three percent for expedited delivery. A number of zombie suppliers are expected to miss even this low bar. Meanwhile, we’re wondering how AIG didn’t manage to get a piece of this action.
More by Edward Niedermeyer
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I think bankers can now officially rank on the bottom of the professional totem pole in terms of the respect they deserve. Even below trial lawyers, insurance agents, and (yes) car salesmen.
no_slushbox-- Way ahead of you. My account is already in a locally owned, regional bank, and was before the crisis. I never trusted the big boys. Local banks are actually still doing quite well, since they didn't do as much funny business as places like Citi.
Best photo ever.