Saturday, February 2, 2019

Citi's Returns on its campaign contributions

By now you must have read, seen and heard about the Federal Government's bailout of Citi by buyings its bad assets at Cost.
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:

  1. The Government would back up any losses in the $306 Billion tainted assets pool.

  2. 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