The good thing about being a major Banker is that you don’t have to fly to Washington hat in hand begging for money. Washington will fly to you with suitcases stuffed with money. Not only does this help avoid the embarrassing costs of private corporate jet-time but it also avoids all those nasty public questions.
“Hi we are Citi bank and we are too big to fail…yes yes yes we will see you at 10 pm tonight…whats that? you are arriving on the first commercial flight from Washington…oh I see you are just going to walk across the street.”
The US government rode to the rescue of Citigroup, entering an agreement to guarantee up to $306bn in problematic assets and inject $20bn in capital to restore confidence in a bank that defines the term “too big to fail”.
The question is how many IOUs or SYAs can the US Government write with credibility?