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Thursday, July 15, 2010

Citibank (citigroup) Bailout?


So, the big three automakers had to go back to the designing board, draw up some plans that would show long-term viability and get back with Congress December 2nd. If all the hype and plans look good, then you and I (the taxpayers) might loaned them something like $25 BIG ones, as in billions, to tide them over the holidays. Oh yeah, and did you hear that GM reduced their corporate fleet of executive planes from 5 to 3? So, who's NEXT for a bailout?


Citibank-Citigroup! Do you have the next number? Come on down! :-(

Citigroup has more than $2 trillion of assets, dwarfing companies such as American International Group Inc. that got U.S. support this year. Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben S. Bernanke may favor a rescue to avoid the chaotic aftermath of Lehman Brothers Holdings Inc.’s bankruptcy in September. Hey, if AIG deserved a loan, why not Citigroup?

“There is no question that Citi is in the category of ‘too big to fail,’” said Michael Holland, chairman and founder of Holland & Co. in New York, which oversees $4 billion. “There is a commitment from this administration and the next to do what it takes to save Citi.” Really, and is SIZE the minimal requirement for bailout bonds?

While Citigroup executives say the company has adequate capital and liquidity to ride out the crisis, its tumbling share price may shake the confidence of creditors, clients and rating agencies. A similar scenario played out at Lehman, when Chief Executive Officer Richard Fuld declared the firm was “on the right track” five days before the firm went bankrupt. Citigroup stock is now trading below $4 a share. Who would have ever thought we'd see 1,028,692,888 shares traded as we did last Friday?

Friday's close was $3.77, down 0.94 a share or down 19.96% Not a pretty picture.

Citigroup CEO Vikram Pandit told employees today that he doesn’t plan to break up the company, aiming to reassure workers as the stock resumed its skid. Pandit and Chief Financial Officer Gary Crittenden, speaking on a worldwide conference call this morning, also said they don’t expect to sell the Smith Barney brokerage unit, according to two people who listened to the call and declined to be identified because it wasn’t open to the public.

Isn't that the same kind of assurances we got from AIG, Freddie Mac, and Fannie Mae...............just before being bailed out by you and I- the taxpayers?

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primerica division of citigroup reviw

Company Background:

Primerica Division of Citigroup,was founded in 1977 by Arthur L. Williams, Jr. as A.L. Williams & Associates. The company established a niche market by marketing the concept of "Buy Term and Invest the Difference." There goal was to encourage middle-income families to buy affordable term life insurance so they could have more money to invest in their family's future.

In 1991, Primerica Corporation changed the name of A.L. Williams to Primerica Financial Services, and in 1998, Travelers Group and banking giant Citicorp merged creating Citigroup. Primerica and its affiliates continued to operate as subsidiaries of Citigroup, although the Travelers insurance business was spun off in 2002.

Products:

Term Life Insurance, Auto Insurance, Homeowners Insurance, Mutual Funds, second-mortgage and personal loans

Business Opportunity and Compensation Plan:

As the Primerica Division of Citigroup representative, the income level that they achieve varies based upon the licenses obtained, and the amount of commission-based business written in the field, as well as the size and activity of the agent's organization. The time that it takes to get trained and licensed for Primerica Division of Citigroup products may prevent the kind of fast organizational growth that has taken place with many network marketing companies; however, Primerica attracts more serious networkers and more people with professional backgrounds.

Entering Primerica costs $199, which is reimbursable upon passing a licensing exam, since life insurance licensing is a required element of the business opportunity. The commission on a sale of term life insurance is 25%. The representative who closes that sale gets the bulk of the commission but has to split the rest among people in their upline. As with any business structured around multi-level marketing, you are paid commissions based on your sales level.

If you're seeking an internet business, you won't find it in Primerica, yet. Those looking for complete details will need to contact a Primerica Personal Financial Analyst directly for a one-on-one presentation, which is usually conducted in-home or in-office.

If you're seriously considering a Primerica business opportunity, take inventory of your "warm market", family and friends, since Primerica Division of Citigroup recommends that these people become your first prospects when trying to build your business. Primerica Division of Citigroup recommends that you have 8 new kitchen table appointments per week to grow your business.