So assuming that the banking sector doesn’t suffer another crisis in the next two years, taxpayers might be okay after all. Indeed, even if there is some loss on these guarantees, the assets would have to be pretty rotten to eat up the government’s entire $12 billion profit on the equity sale.The Atlantic associate editor Daniel Indiviglio • Offering some more context on the Citi bailout numbers. While the U.S. no longer owns any shares in Citi, we do have other stakes in the company – most notably, we’re still backing a lot of their debt right now due to a program called the “Temporary Liquidity Guarantee Program,” which isn’t as easy to acronym as TARP. But by the end of 2012 at the latest, we’ll be off the hook for that. Still, though, the fact that we might make any money off of TARP is impressive. “Citi was viewed by many as the big bank with the most serious problems,” Indiviglio notes, suggesting that the profit would prove that their bailout in 2008 was warranted by panic and general FUD, not “too big to fail”-type concerns. source (via • follow)
The new credit card?For the most part we’ve been using the same credit technology for 60 years, at least in the U.S. That magnetic stripe has proven pretty durable. So Citibank is introducing multi-button cards like these starting next month, which (among other things) will allow you to tie multiple accounts to the same card.
What’s the point?Sorry, but we think that the design of the cards shown here is downright laughable, and technologies like Visa’s Paywave and Square are both out in the wild already and way more useful. We want less, not more, complication at the checkout. The new credit card isn’t a multifunction monster. It’s a cell phone. source