Do we really need another "bad bank"??? ;)
Under the terms being discussed, Citigroup would agree to absorb losses on assets covered by the agreement up to a certain threshold. The federal government would cover losses beyond that level, people familiar with the matter said. One person said the new entity is expected to hold about $50 billion of assets.
It is unclear whether the U.S. government will take an equity stake in Citigroup in return for providing a financial backstop. Also uncertain is if Citigroup would get a government loan to finance the facility. The government took that approach with insurer American International Group Inc. in late September.
Somehow we think they will need more than $50B of bailing.