From this morning’s New York Times:
On Tuesday, Mr. Bernanke publicly made the case that one of the most unpopular and most scorned programs in Washington — the$700 billion bailout program — needs to pour hundreds of billions more into the very banks and financial institutions that already received federal money and caused much of the credit crisis in the first place.
So the banking system, already flush with excess reserves, needs more money. Especially Citi. Wasn’t this the very scenario we were promised would be avoided when the stimulus package was passed last October?