Citigroup was a week from shutdown when Feds intervened in November 2008

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Citigroup Was On The Verge Of Failure, New Report Finds; Rescue Was Based On 'Gut Instinct'

First Posted: 01-13-11 03:33 PM | Updated: 01-13-11 04:19 PM

Citigroup, the nation's third-largest bank by assets, was on the verge of being closed by regulators the week of Nov. 24, 2008 as depositors rapidly withdrew money and the bank's counterparties declined to provide it credit, according to a government report released Thursday.

The new findings shed light on the degree to which Citigroup, the financial services behemoth with a long history of finding itself in trouble and receiving government support, was actually in danger of failing during the fall of 2008. Until now, few were aware that Citi was perilously close to being shut down.

"We were on the verge of having to close this institution because it can't meet its liquidity Monday morning," said Sheila Bair, chairman of the Federal Deposit Insurance Corporation, during a meeting the previous Sunday night, according to the report by the Special Inspector General for the Troubled Asset Relief Program.

"Without substantial government intervention," said another FDIC official, bank regulators and Citigroup "project that Citibank will be unable to pay obligations or meet expected deposit outflows next week," according to the report.
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We should've let them fail.

Citigroup Was On The Verge Of Failure, New Report Finds; Rescue Was Based On 'Gut Instinct'

reply to post by dbriefed
My sentiments exactly! Let um FAIL. If Citigroup doesn't care enough about regular people to even use them to wipe their nose, and blackmail the government to get it to pull their nalgas from the bar-b-que pit, then it is time for them to suffer. But unfortunately hind sight is 20-20, and we let them get away with money from all the poor tax payers and not from the super-wealthy who bank there.