Conquer Club

Citigroup one of the largest of the moribund banks has got itself another whopping big public bail out. It isn't being reported as such but that's what it is. So now we get out first glimpse of the next round of 'shit on the people while soothing the bankers' and how it's being done this time.

Read how the raw story is reported for yourself....I'll wait. A fine example of financial reporting.

OK? A company Student Loan Corp. 'has agreed' to sell its loans and assets to Citi, Discover financial and Sallie Mae. Citi is to 'buy' $8.7 billion worth of 'assets. Discover will buy a piddling 0.6 billion in private student loans. While Sally Mae, another one of the US government sponsored financial institutions (GSE's) like Fannie and Freddie, is 'buying' $28 billion in securitized federal student loans .

The private loans will be AAA rated and performing, valuable loans. The Assets Citi 'buys' will similarly be good. Sallie Mae 'buys' $28 billion in defaulting, toxic securities and yet the headline is now Citi is buying assets?! f*ck me sideways!!

First thing - Student loans have been defaulting at horrific rates just like home loans. Lots of losses. So Student Loan Corp is in deep trouble. Everybody knows this. So the NEWS is that the government is relieving Citi of $28 billion in toxic shit. No mention in the responsible financial press.

Second thing. Citi largely owns and IS Student Loan Corp. So it's not buying anything. It is shifting losses about in the family.

Third, Sally Mae AKA the tax payer is paying Student Loan Corp AKA Citi $30 a share which is 42% ABOVE the market price set yesterday. That huge over payment gives Citi roughly a 12 billion dollar bail out straight away. And more over relieves Citi of the inevitable further losses on those loans and saddles the tax payer with them instead.

AND THAT is how much the government of the USA cares for its people. Government by the wealthy for the wealthy.

A ban started July 1 that prevents private lenders from making federal student loans.

Wouldn't this in effect ban free competition for federal student loans? Therefore, the student has to a get raw deal from the government's federal loan instead of perhaps a better federal loan from a private lender? (honest question, just need some insight)

BigBallinStalin wrote:

A ban started July 1 that prevents private lenders from making federal student loans.

Wouldn't this in effect ban free competition for federal student loans? Therefore, the student has to a get raw deal from the government's federal loan instead of perhaps a better federal loan from a private lender? (honest question, just need some insight)

The federal government now directly distributes the loans for the federal grant programs such as Stafford Loans, Perkins Loans, and PLUS Loans. Previously, the federal government set the interest rates on those loans and then let private companies disperse the money and collect the interest. Students can still get education loans from private companies, but they aren't necessarily the low interest federal loans. This change a) took potential profit away from already struggling banks to cause them to rely more on the government and b) cut out the relationship a borrower can establish with banks to get future loans. Many times, a student loan is the first loan a person picks up in their lives, and establishing a credit history with a bank is beneficial for both the lender and the borrower in the long run. But that option was taken away.

Night Strike wrote:

BigBallinStalin wrote:

A ban started July 1 that prevents private lenders from making federal student loans.

Wouldn't this in effect ban free competition for federal student loans? Therefore, the student has to a get raw deal from the government's federal loan instead of perhaps a better federal loan from a private lender? (honest question, just need some insight)

The federal government now directly distributes the loans for the federal grant programs such as Stafford Loans, Perkins Loans, and PLUS Loans. Previously, the federal government set the interest rates on those loans and then let private companies disperse the money and collect the interest. Students can still get education loans from private companies, but they aren't necessarily the low interest federal loans. This change a) took potential profit away from already struggling banks to cause them to rely more on the government and b) cut out the relationship a borrower can establish with banks to get future loans. Many times, a student loan is the first loan a person picks up in their lives, and establishing a credit history with a bank is beneficial for both the lender and the borrower in the long run. But that option was taken away.

If what you say is true, then it sounds like a lot of people just got blocked from some very good opportunities. Where's the justice?

Juan_Bottom wrote:

Is this one of those 'Capture the Flag' paintball games I've heard about? Never knew that the flag was held by some bird wiv 'er fun pillows out, otherwise I might of gone.

i'd tap liberty

john9blue wrote:i'd tap liberty

she has no nipples