San Diego real estate blog - Peter Toner

The government’s latest attempt to assist the nation’s struggling financial system is their bail out of Citigroup, one of the world’s largest banks. So what’s the price tag on this newest bail out? To start $306 billion in loan guarantees as well as an added $20 billion cash infusion. The government in exchange is requesting preferred shares in the company with the option to buy more in the future at a specialty rate. The government felt it had no other option but to step in as Citi’s troubles seemed to grow at an alarming rate. Mass company lay off’s, rumors of bankruptcy, shareholders pulling out major investments… just to name a few.

With bail out’s being handed out left and right to the “big guys,” what aid or assistance programs are available for the “little guys”… or are they left out in the cold? Unfortunately for now it appears there is no immediate assistance. Many small bank owners are upset that although they may have been “playing by the rules” the big banks that did not, and are now struggling do to their actions, are the ones being aided by the government. Small community style banks are asking that the “big banks” and the executives leading them be held accountable for their behavior. Seems fair enough? Whether or not that will be the case, right now it does appear to be a very un-even playing field…