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New disclosures have put the loans to the Rigas family at $3.1 billion and have revealed other questionable dealings between the company and the family.
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The White House already had a similar bust, but Mr. Bush put the loaned one in the Oval Office.
That happened, so Citi forked over the cash and immediately put the loan on nonperforming status.
The government put the loan on sale, and who should buy it directly from the government but the Herbst family, at a discount of more than 50percentt.
The cash flow from the property does not come close to what was projected in the loan documents, according to Realpoint, a credit ratings agency which has put the loan on its watch list.
The bank is happy because they have successfully, with a menial $4000 payment, put the loan off of their books and onto the books of the Government (i.e. your tax paying dollars).
Pumping bailout money to banks themselves avoids putting the loans on national balance sheets and should help keep a lid on sovereign borrowing costs.
Ireland and Spain are among the nations lobbying strongly to speed the direct aid, because pumping bailout money to banks avoids putting the loans on national balance sheets and helps keep a lid on borrowing costs.
Most banks have minimum loans amounts, based upon their internal production cost of putting the loans on their books.
Analysts are now putting the loan figure as high as $2.7 billion, including money the Rigases have borrowed since Dec. 21.
America needs to rid itself of politicians who propose ridiculous social engineering programs where the ultimate result is putting the loan write-downs on our backs and our children's backs.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com