As i specified earlier, this was a bailout that had to happen, because of Citi's campaign contribuitions.
As can be seen in the graph, Citi's total campaign donations to both parties exceeded $ 25 million in the decade from 1998 till 2008.
Citi bailout joint statement which states:
- The Government would back up any losses in the $306 Billion tainted assets pool.
- The Government invests $20 Billion in citi as Equity (Preferred 8%).
Although the first $25 Billion in the tainted assets are borne by Citi technically, am sure that will not come to pass.
Now, to calculate the return on Citi's investment:
306+20=$326 Billion in total.
Investment (as campaign contributions) = $ 25 Million.
Return after a