Government Now Getting Nervous About Buying Citay's Shitay Assets

Author:
Publish date:

From Gasparino:

Sources with knowledge of the deal say government officials are now getting cold feet over the plan to buy the troubled assets from Citigroup.
The problem with buying the assets from Citi is political: people close to the deal know that other firms will line up and ask the government to purchase their troubled assets as well knowing that all brokerage stocks got crushed when treasury secretary hank paulson reversed his plan on the tarp to direct capital infusions to the banks and away from buying troubled assets.

And my favorite part, because I know he's playing to us:

Bottom line: this is very fluid and the situation may change again, but as of now government getting cold feet on plan to buy troubled assets, which leaves direct capital infusion on the table.

Related