Seven things to know about the Citigroup bailout

U.S. News and World Report blogger Luke Mullins lists seven things he thinks the public should know about Citi's bailout. Mullins also emphasizes the fact that this is actually Citi's second bailout; the banking giant received a "$25 billion capital infusion from the government" just five weeks ago. Here are his main points:

1). Citigroup was too big to fail. The government considered a potential failure "too risky to a financial system already in crisis." 

2). The company's depressed stock price helped secure the $20 billion bailout from the government. The stock plunged partially because of Henry Paulson's remarks in mid-November that he was "abandoning his previously announced plans to buy up troubled, mortgage-related securities." Mullins writes, "Thanks, Hank." 

3). The bailout of Citigroup now exposes taxpayers to "hundreds of billions of dollars of toxic assets." The potential loss may add up to as much as $230 billion. 

4). The $20 billion rescue package may actually not be enough. While Citi's stock skyrocketed on news of government intervention Monday, the money may ultimately not be enough to prevent a further drop in the company's share price. 

5). This may just be the beginning and a start of a "new model." Other troubled banks could "come knocking on [the] Treasury's door" in the very-near future. Banks in similar positions will seek the same treatment.  

6). Congress may not be willing to participate in Paulson's rescue efforts. The criticism of the Bush administration and Henry Paulson in particular may become more intense. 

7). The financial crisis is probably still "far from over." Investor confidence is low and "panic-level fears are still running loose in the market." 

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