- Home
- Business & Marketing (833)
- Editorials (671)
- Entertainment (2033)
- Fashion (1032)
- Highbrid (189)
- Honeys (2876)
- Humor (948)
- Music (5222)
- Need to Know (2224)
- News (2076)
- Podcasts (4)
- ARCHIVE
Tuesday, November 25, 2008 | 12:21pm
Feds ‘Bailout’ Citi but Bank Still Plays $400 Mill ‘Dress Up’ With Ballpark Naming Rights
NY Taxpayers pay for Mets’ Citi Field Twice and still gotta buy a ticket
So the federal governement has covertly over the weekend slipped yet another multi-billion dollar emergency “bailout” package across the table for struggling Citibank. Like so many others before it, the financing giant got complacent, lazy and in the end suffered billions in bad mortgage-related assets on its books which of course lead to 53,000 innocent workers who had nothing to do with the mistake getting let go. In the end Citi saw its stock price lose over half its value and left our sinking economy in even more peril. So although we all individually may be out of a job, have lost our 401K’s and our homes due to the mistakes of Citi, the government threw them an automatic and virtually instantaneous life raft this weekend.
In addition to cringing over the thought of how that translates into my own personal tax and finance situtation the deal hits particularly close to home. As a life-time fan of the New York Mets baseball team, it makes me wonder…why the hell is their brand new stadium set to open this spring still adorn the name “Citi Field.” So let me get this right…this bank which was in so much trouble that it needed $306 Billion OF OUR MONEY to guarantee bad debts of which THEY approved in the first place somehow will still get to play dress up with the New York Mets even to the tune of $400 million over the next 20 years.
Here’s the kicker however, although the stadium isn’t funded by public monies unlike the snakes across the river (The Yankees) $450 million of the $850 price tag is subsidized by public monies. So as a New York tax payer I not only have to pay for the stadium in tax money but now pay for it again through Federal Taxes paid to Citi for the bailout not to mention I still gotta pay for my tickets which oh by the way also went up.
FILED IN Need to Know
As a resident of the metro-Detroit area, I’m especially pissed off about the way they pick and choose who’s “too big to fail”.
.
Over the weekend they decide to dump $40 billion into Citibank without so much as a debate, and yet they don’t want to give the auto companies $20 billion, even though the failure of the auto companies will cost us another 10% unemployment and the last of our once-great manufacturing base.
.
It just bugs me that they play God with the lives of 3 million auto-related jobs, as well as the future of at least 2 states, and yet they give their friends payoffs…. And we’re just supposed to accept it.
I’ve been saying that for weeks. The one point that was made that I agree about it the auto industry needs a defined plan. I think there needs to be some type of waiting/ vetting period for the Federal gov’t to look at these banks or auto manufacturers to determine exactly how much money is needed, where is it going and for what exact purpose. These over the weekend deals are killing me.
As far as the auto industry, I think the reluctance may stem from the fact that Vehicles are a luxury while finances aren’t but that doesn’t speak to the jobs that are lost.
I agree with Malcolm in that I feel the auto industry is a bit more important but like Juan said, I need to hear something that will make me believe that the heads of the auto makers wont just run through the money and then look for another hand out. I honestly feel like these car makers are idiots. They put so much time and effort into SUV and were completely un prepared for future. Now they are stuck. Their hybrid lines are underdeveloped and they are stuck with all these SUVs that no one can afford to own.
In response to what you said Mike, I read that prior to bailing out the much needed auto industry the federal gov’t has asked the auto giants to construct an outline as to how they will utilize the money. That’s the problem in America, it was always thought that bigger is better, which allowed japanese automakers to quietly slip in underneath the SUV market.
They addressed this very topic today on PTI and they were saying Citi will possibly want to sell the naming rights back to the Mets but will the Mets buy it? Who knows but at least GM had the decency to say were not going to pay Tiger Woods 7mill a year when our company is tanking. Citi should extend the average American the same courtesy and give up the rights to the highest bidder apparently they need the money the goverment should give them another 400 mill for the stadium, then we could call it “Federal Government Field”
fu*@ed up aint it?!! and watch as the banking giants gobble up land,homes, businesses and other banks to become even bigger monopolies!!
Their claim is that the naming rights are part of their long term marketing plan so the idea is that with the stadium branding it will have a 100+ return on investment and increase business.
.
Do I buy it nah. I saw what GM did 4PL and I think that Citi definately needs to follow their lead. Paying for a stadium TWICE that you don’t own or may not even root for the team that plays there? Very suspect.