News is coming out tonight that the U.S. may take a 40% Citi stake, stopping short of outright nationalization while letting Citi management still turn the steering wheel with our money. Let’s call it "hazardization" for want of a better term.
This would be, of course, contrary to what we were told just last week. That should be no shock, as I wrote here, but it also makes it crushingly obvious how worthless most money center bank equity is in the U.S.
Anyway, I think the best take is from the FT, with the following paragraph’s utter incoherency demonstrating how this Citi news is making people unhinged:
Top Government Officials – who are trying to establish seeking a want a more strategic and less ad hoc response to the crisis – were and are anxious to avoid if possible the type of Sunday night crisis announcement that became a staple for Hank Paulson for ’s crisis management at the Treasury last year.
"Seeking a want a more strategic" … say what?