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.
I guess it would be rather hard to find a “clean” bank to do this work. Really though, WOW
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.
BDB:
Bankers really like money, which makes boycotting particularly effective.
There are a lot of small banks that aren’t at the tax money trough (officially the TARP participants aren’t being named, but it’s unlikely that small privately held banks are participating because the government cannot easily take warrants in them):
http://www2.fdic.gov/idasp/main_bankfind.asp
If everyone took their money out of, for example, CitiShittybank the effect would be interesting, to say the least.
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.