One Month’s Reprieve? $250 billion, says Citi

Remember when Paulson was throwing money at banks that didn’t want it just to cover-up the giveaway to a bank that really, really, really needed it but was too embarrassed to say so?  (Heaven forbid we have a banker beg for cash like a lowly industrial CEO).  Considering how much help / free money Citigroup and other banks have received so far, and the trouble they are clearly still in, is there any wonder why they’re not lending?

I commented on the capital injection program in the past, pointing out that Wells Fargo was provided a capital injection commensurate with a much larger institution (link to NYT chart) (equal to that received by Citigroup, Bank of America/Merrill Lynch, and JP Morgan Chase/Bear Stearns).  I took that as a sign that Wells Fargo Financial was the bank either most in need of the capital (and too embarrassed to ask for it) or perhaps they were given an outsized injection to sweeten their acquisition of Wachovia (which was all the news at the time).

Well, oops.  I still think Wells Fargo is fudging their books, and I made a sweet 387.5% profit having made bets along those lines (thank you for the new motorcycle, Wells Fargo!), but I guess it’s clear now that Citigroup was the biggest bleeder of the bunch.

How close to failure was Citigroup in October that receiving $25 billion didn’t keep death from their door for more than five weeks???

But don’t worry, the ever-competent US government is poised to step in and rescue Citigroup!  Another $25 billion (cleverly hidden in another $250 billion injection to all the major banks so as not to tarnish Citi’s pristine reputation) and Citi might make it to Christmas!  Notice the conspicuous absence of a Fed or Treasury official grilling Vikram Pandit over his willingness to sell the phone he is calling them on in exchange for a bailout.

Ho ho ho!

… and the cow goes moo