There are a lot of people who think that the entire TARP bailout program targeted Citibank. Personally, I think that's bullshit. I believe TARP was created by Hammering Hank Paulson to funnel money to the mega insurer, AIG. AIG owed billions to Hank's former empire, Goldman Sachs. I imagine a few people like Lord Blankfein were just a little pissed and nervous back in '08.
You see, the FED made 9 trillion in loans in late 2008. They really didn't need TARP to bailout their network. They could have just added 700 billion to the 9 trillion they had already loaned. However, they are not authorized to loan to private insurers...especially private insurers that are going to owe billions of dollars to the banker network. The only way to get banks their money back from an insolvent AIG, was to bail out AIG. Thus the great TARP program was unveiled. They simply converted public dollars to private use. In fact, such acts are generally recognized as criminal behavior in many places. I know a county clerk who converted 50k of tax money for a nice boat once upon a time.
Citibank was just fucking camouflage.
Earlier this week, Citibank did a reverse 1 for 10 share stock split on their 4 dollar stock. After they did this, today, they announced a 1 cent per share dividend on their stock which is now trading around 40. The FED, TARP, the shadiest accounting tactics ever devised by man, and all the king's men, just can't put Humpty Dumpty back together again.