The financial giant Citigroup announced today it is going to downsize, shrink the size of the company, by selling off many of its component parts. Citigroup, despite the injection of tens of billions of dollars federal money, is in deep financial trouble, and will reorganize to try and stay afloat. Here’s David Muir.
Despite two massive rescues from American taxpayers, financial giant Citigroup is still struggling to survive, and now plans to sell or spin off parts of its empire. The 25 billion in federal money given in October and the 20 billion more in November have not been enough. “Taxpayers have every reason to be infuriated in this case, in the case of AIG, in the case of Fanny and Freddy, and there’s an increasing realization that something’s drastically wrong in the regulatory structure of the economy.”
In other words, who’s watching this tax money? First, how it’s being spent inside the banks, and secondly, are the banks restructuring themselves to become stronger, so that taxpayer money isn’t being wasted? It’s believed federal regulators are now pushing Citigroup to shed some of its parts faster than it would like, recognizing it can’t keep giving the banking giant money if it’s not doing its part to become a bank that can survive.
“The failure of Citicorp would be absolutely catastrophic for the economy. We wouldn’t be surprised if the federal government stepped in within the next 24 or 48 hours and took control of Citigroup.” Citigroup will no longer be a financial supermarket. It’s splitting off its Smith Barney Brokerage to Morgan Stanley and then will likely sell off its private label credit cards, its insurance division, and its illiquidmortgageassets.
“The sell-off of the parts of the business are basically, uh, to try to, uh, tread water and stay afloat.” These are rough waters for the banking giant, whose stock closed at 4.53 today, a long way from the 51.13 in 2006. And Citigroup now plans to announce its dismal fourth quarter losses this week, far earlier than expected - perhaps a move to get all of this bad news out this week to lessen the pain on Wall Street.
And economists say many of these giant banks, like Citigroup, that already received bailout money, will soon need even more because the economy has only worsened, which will be a tough argument on Capitol Hill, where the incoming Obama administration has said the next batch of bailout money needs to greatly focus on homeowners. The banks got nearly all of the bailout money, as you know Charlie, so far. David Muir reporting tonight. Thanks.
※ bail out 1. 보석금을 지불하고 ~ 을 보석시키다 (to pay money to a court so that someone can be released from prison until their trial) ex. He bailed his son out. 그는 보석금을 내고 아들을 빼내왔다. 2. <회사 사람 등을> (돈을 지원하여 어려움에서) 구출하다, 구제금융을 지원해주다 ( to help a person or organization that is in difficulty, usually by giving or lending them money) ex. bail a person out of financial trouble 을 재정 곤란에서 구해내다 3. to jump out of an aircraft with a parachute because the aircraft is going to have an accident ex. The plane's engine failed and the pilot was forced to bail out. 4. bailout (낙하산에 의한) 비상 탈출, (경제적인) 구제 조치, (정부 금융 기관에 의한) 구제 금융, 긴급 금융 지원 ex. Three years of huge losses forced the bank to seek a government bailout.
downsize : 소형화하다;<인원을) (대폭) 축소하다 ex. American manufacturing companies want to downsize their factories. shrink : 움츠러들다 , 오그라들다 , 줄어들다 , 축소시키다 , 움츠 리게 하다 sell off : ~ 을 헐값에 팔아치우다 ex. The company will have to sell off assets to avoid bankruptcy. * sell-off : 투매 (the rapid selling of securities, such as stocks, bonds and commodities) component : 구성하는 , 성분의 , ( 기계 스테레오 등의 ) 구성 요 소 , 성분 ex. component parts 구성 요소 , 성분 afloat : <물위에> 떠서, 빚지지 않고 활동할 수 있는 ex. keep afloat 가라앉지[빚지지] 않고 있다 ex. We managed to get the boat afloat again./ ex. one million dollars is needed to keep the institution afloat. struggle : 발버둥치다, 몸부림치다, 애쓰다, 허덕이다, (~ 과) 맞붙 다, 분투하다, 싸움, 투쟁, 힘든 일 * struggle to do something: ex. We have to struggle to win our freedom. / * struggle with: ex. They've had to struggle with the painful process of modernization. / * struggle for: ex. Andy was coughing and struggling for breath. 숨쉬기 위해 애썼다 , 숨을 헐떡거렸다 / * struggle into/out of etc: ex. She struggled into her tight jacket. / * struggle against: ex. people struggling against oppression. 억압 / 압제와 싸우는 사람들 ex. It was a struggle to get up the hill in the snow. 눈 덮힌 언덕 을 오르기는 너무 힘들었다 spin off : 1. (부수적으로) 다른 것을 파생시키다(to create something new based on something else that already exists) 2. 분사하다(to make part of a company into a new independent company) infuriate : 격 노하게 하다, 격분시키다 ex. be infuriated at~ ~ 에 노발대발하다 drastic : 격렬한, 맹렬한, (수단 등) 철저한, 과감한 ex. They resorted to a drastic measure. 그들은 강경 수단에 호소했다. regulatory : 조절[조정]하는, 규정하는, 단속하는 * regulate : 규제하다, 단속하다, <수량 정도 기계를> 조절 [조정]하다 * financial regulatory system : 금융규제시스템 push : 밀기, 떠밀기, 강력한 추진 /a determined attempt to do something * a push for ~ : ex. a push for financial reform * a push to do something : ex. The two sides began a final push to reach an agreement before the deadline. * push for ~ : 강력히 밀고 나아가다, 강력히 추진하다 ex. Britain's health experts are pushing for a ban on all cigarette advertising. shed : 1. 나뭇잎을 떨어뜨리다, 허물을 벗다, 눈물 따위를 흘리 다 2. 떨어 버리다, 제거하다( get rid of something) 3. 빛.소리.향기 따위 를 발하다 ex. Some of the trees were already beginning to shed their leaves. ex. He had maintained a rigid diet, shedding some twenty pounds. ex. Roses shed their fragrance around. 장미는 주위에 향기를 풍긴다 catastrophic : 대변동 [ 큰 재앙 ] 의 , 파멸의 , 비극적인 * catastrophe 대참사, 큰 재앙 (disaster), (큰) 불행, 불운, 재난 ex. Catastrophic floods have devastated the region. step in : 개입하다(to become involved in a discussion or argument, especially in order to make it stop) ex. It is time for the government to step in. * step out : MAINLY AMERICAN to leave a place for a short time ex. I'm sorry, Karen's just stepped out for a second. * step up : to increase something ex. The president has stepped up the pressure on the groups to come to an agreement. split : 찢다, 쪼개다, 쪼개지다, 분열시키다, 이간시키다 brokerage : 중개(업), 중개회사 private label : 자가 브랜드, 자체 브랜드 (the label of a product, or the product itself, sold under the name of a wholesaler or retailer, by special arrangement with the manufacturer or producer) liquid : 액체, 액체의, 유동성의, 현금화하기 쉬운 ex. liquid assets 유동 자산 * illiquid : 현금으로 바꾸 기 어려운, 비유동적인 mortgage : 저당, 주택 융자, 모기지, ~ 을 저당하다 ex. hold a mortgage on a person's house 의 집을 저당잡다 / ex. The estate is mortgaged. 그 대지는 저당이 되어 있다. * take out a mortgage 모기지융자 받다 asset : 재산, 자산 tread water : 서서 헤엄을 치다. / 1. to stay upright in deep water by moving your legs and arms so that your head stays out of the water 2. to not make progress, especially because you have to wait for something else to happen first ex. For now we're just treading water, but we hope negotiations will begin soon. be a long way from ~ : ~ 부터 멀리 떨어져 있다, ~ 이 결코 아니 다 dismal : 우울한, 침울한, 참담한/1. making you feel unhappy and without hope or enthusiasm (=depressing) ex. dismal living conditions / ex. a dismal (= very bad) performance/record lessen : ~ 을 줄이다 bailout : (낙하산에 의한) 비상 탈출, (경제적인) 구제 조치, (정 부 금융 기관에 의한) 구제 금융, 긴급 금융 지원 ex. Three years of huge losses forced the bank to seek a government bailout. * bail 보석, 보석금, (돈을 지원하여 어려움에서) 구출하다 * on bail : 보석금을 내고 , 보석으로 ex. He was allowed out on bail. 그 는 보석금을 내고 출감을 허가받았다 batch : 한 솥, 한 차례 굽는 양, 1 회분, 한 묶음, 일군(一群), 일 단 (一團) ex. He took the first batch of cakes out of the oven. ex. This new batch of students seems very nice.