Just a quick thought here and it’s off to bed. Why did the FDIC allow Citi to issue $12 billion of debt today with their guarantee attached? Did they have no choice, is no one watching the store or does this tell us something about the government’s future plans.

Best guess here is that Citi had some debt it had to roll over, they couldn’t do it without the government standing behind it, nobody in Washington has a plan yet and Sheila said go ahead and we’ll put our chop on it. After all, $12 billion is a small number these days.

What’s your guess?

more: here