CitiGroup: Mets $400 million; 52,000 employees a pink slip for Xmas

Sean is aghast...

Citigroup announced one of the largest layoffs for any industry on November 17, saying it planned to eliminate 52,000 jobs.

On November 21, Citigroup stock teetered at $3.77 a share (it was trading at $31 a year ago).

CitiCorp Sign At Mets Ballpark

On November 24, the Treasury Department announced plans to provide another $20 billion in Troubled Assets Relief Program (TARP) funds in addition to $25 billion given in October. The Treasury Department, the Federal Reserve and the FDIC will cover 90% of the losses on its $335-billion portfolio after Citigroup absorbs the first $29 billion in losses. In return the bank will give the federal government $27 million of preferred shares and warrants to acquire stock. The government will obtain wide powers over banking operations. Citigroup has agreed to try to modify mortgages with the goal of keeping as many homeowners as possible in their houses. Executive salaries will be capped.

On November 21, Citigroup reaffirmed its plans to fork over $400 million ($20 million a year) for the naming rights of the new baseball stadium for the New York Mets. What is not known is if they left the contract what the penalty if any would be if that occurred.

It seems plain and simple to me here. The name of Citigroup on a new stadium is more important than people's jobs or actual business operations. It's nice to know where our tax dollars are going.