Treasury, FDIC bail out Citibank – no wage cuts demanded

As Congress debates $25 billion in loans to the Detroit automakers, likely demanding wage cutbacks by executives and line workers alike – loans strongly opposed by the White House – the Treasury Department and FDIC have stepped up with what may become $345 billion in aid to Citibank. The government has already put $25 billion in capital into Citibank, and will be making another $20 billion investment; in addition, it is backing $300 billion in “troubled assets.” No senators or former presidential candidates have so far been quoted as saying that Citibank should be left to bankruptcy because its troubles are its own fault, its executives are overpaid, its tellers are overpaid, or because it has no real plan for survival.

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