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Citigroup Inc. (NYSE: C) plans to sell its Japanese trust banking unit NikkoCiti Trust and Banking for about 40 billion yen ($416.7 million) as it struggles to survive the global financial crisis, according to the Nikkei. Also, a Citigroup fund, Citi Infrastructure Partners, is bidding 7.9 billion euros ($10.2 billion) to buy a Spanish highway operating firm, Sacyr Vallehermoso, the firms said on Monday.

Yahoo! Inc. (NASDAQ: YHOO) and Microsoft Corp. (NASDAQ: MSFT) -- over the weekend there have been conflicting reports regarding the two. There were reports that Microsoft is going to offer $20 billion for Yahoo's search business, but then other sources said these are completely unfounded. Meanwhile, SAI posted that Sue Decker is the front runner for the CEO job at the portal company.

General Motors Corp's (NYSE: GM) board met Sunday to review a restructuring plan intended to win support for up to $12 billion in emergency funding from the U.S. government, according to different reports. GM's plan includes cuts to executive pay andcould indicate that the company will ask some bond holders to accept equity and a limited cash payout to redeem the debt they hold and focus on fuel-saving technology.

[Update 8:50 am: Johnson & Johnson (NYSE: JNJ) has agreed to buy breast-implant maker Mentor Corp. (NYSE: MNT) for $1.07 billion, or $31 per Mentor share, a 92% premium to Friday's closing price. The deal, expected to close in the first quarter of 2009, is expected to have a dilutive impact to Johnson & Johnson's 2009 earnings per share of approximately $0.03 - $0.05. Of course, MNT shares are up over 88% in premarket trading.]

We are unfortunately not privy to the backroom deals and promises that are passing between Treasury Secretary Henry Paulson and the honchos who are benefiting from the government's massive bailout. However, two things are becoming increasingly clear: first, the financial industry has not gotten the memo about changing their business practices, and, second, the $700 billion in tax money that is keeping these companies afloat is not finding its way down to the average citizen. The big bailout was originally sold as a desperate maneuver to keep Wall Street afloat. Paulson has indicated that these funds would enable lending companies to service their toxic debt and, in turn, continue lending. In this way, America would be able to count on the credit that kept it running; businesses would be able to meet their payrolls, people would be able to buy houses, and the world would continue to turn.

Instead, some banks seem to be going on a buying spree, snatching up smaller, less successful institutions while prices are low and the getting is good. Citigroup (NYSE: C), for example, used the Wall Street fire sale to make a bid for Wachovia and pick up Forum Financial, shortly before asking for a second huge bailout. Similarly, Bank of America (NYSE: BAC) has decided to take over Merrill Lynch. A clever MBA could, undoubtedly, filter these purchases through a secret capitalism decoder ring and come up with a logical reason for them, but one wonders how gobbling up companies (and their toxic debt) is likely to help Bank of America and Citigroup to stay afloat, much less enable them to extend money to consumers. It is becoming clearer and clearer that the huge influx of taxpayer money is less about saving consumers than it is about enabling big companies to get even bigger.

With the end of the year fast approaching, it's time to start putting together "best of" and "worst of" lists for 2008. This entry is a little bit of both, but it's admittedly heavy on the "worst of." Among the current members of the S&P 500 Index (SPX), just 11 were sitting on a year-to-date gain as of the close of trading on Monday, November 24. Since Big Lots (NYSE: BIG) is unchanged, that means we have a whopping 488 securities sitting on a loss for the year.

Let's start with the bad news first. Among the worst-performing stocks on the SPX, the six top spots are claimed by stocks in the Insurance and Real Estate sectors. General Growth Properties (NYSE: GGP) has the dubious honor of dropping nearly 98% on the year, and -- not surprisingly -- American International Group (NYSE: AIG) isn't far behind.

When longtime AOL executive Ted Leonsis got a holiday gift from his insurance company, American International Group Inc. (NYSE: AIG), of a Tiffany box with two champagne glasses, he got angry.

"Arrgghhh! Are you kidding me?" wrote the owner of the Washington Capitals hockey team on his blog. "Please! Save the money and keep some people employed. Give the money to charity. Take less money from the taxpayers. Why do I need two more champagne glasses? Dumbest thing I have seen this week."

Leonsis is, of course, right. The last thing AIG needs to be caught doing is wasting money on stupid crap like corporate junkets or buying rich people stuff they do not need. By the way, the most expensive Tiffany champagne glass I saw retails for $55. This underscores that the insurance company's management team does not get it.

When a company gets a multi-billion bailout from the federal government, it means things went horribly wrong. The same thinking that got them into this mess can't get them out of it. Limiting executive pay is a good first step, but more needs to be done.

Let us know if you got an expensive gift from a failed bank.

AIG (NYSE: AIG) seems to be shifting money from one bucket to the other. The net effect is that it owes the government a huge sum, which is not dropping.

According to Reuters, "American International Group Inc says it has completed completed a $40 billion preferred stock sale to the U.S. Department of Treasury under TARP".

That money will only go to repay the money it owes to the Federal Reserve. At the end of the day, AIG has done nothing to help its own cause or the taxpayer's.

Now that Citigroup (NYSE: C) has access to Treasury money to the tune of a $25 billion initial investment and $27 more it got earlier this week, it raises the question of what it will do with any preferred shares it can sell using TARP backing. The answer is probably that it will be recycled back to the Treasury or the Fed because it has borrowed from both agencies.

It is a hell of a way to run a financial system.

Douglas A. McIntyre is an editor at 247wallst.com.

Toyota Motor Co. (NYSE: TM) -- recently we've seen more and more signs that the slowdown in general and the auto industry troubles particularly have been hurting Toyota too. Today, Fitch Ratings cut Toyota's top-notch credit rating to "AA" from "AAA," as the carmaker was indeed hit by the world auto market slump, high material cost and from a surging yen. TM shares were down 3% by 11 am.

American International Group Inc. (NYSE: AIG) announced late Tuesday it has closed its $40 billion stock placement with the U.S. Treasury under the government's Troubled Assets Relief Program. The Treasury bought shares of AIG equaling 2% of the company on the date of the investment. AIG shares were up 0.5% by 11 am.

Deere & Co. (NYSE: DE) reported that fiscal fourth-quarter net income fell 18% to $345 million, or 81 cents a share, as sales rose 21% to $7.4 billion. Analysts expected earnings of 99 cents a share on sales of $5.2 billion according to FactSet Research. The guidance for fourth quarter was below estimates. DE shares were 6.3% lower in premarket trading (8:03 am). DE shares were down 9.6% by 11 am.

Tiffany & Co. (NYSE: TIF) reported that its third quarter earnings declined to $44 million, or 35 cents a share on lower sales of $618 million. This was above analyst estimates of 26 cents EPS and sales of $697 million, according to FactSet Research. Tiffany said it plans to reduce staff. TIF shares were 8.6% lower in premarket trading (8:03 am). TIF shares were down 4.1% by 11 am.

Add another $308 billion in balance sheet guarantees and another $27 billion more in invested capital to the $100 plus billion which has gone into AIG (NYSE: AIG) and the $250 billion or more that the Treasury has put into a number of large banks. That is what Citigroup NYSE: C) is getting as a bailout. The $308 billion will be to back Citi toxic funds. The bank will have to take the first $29 billion on losses from these. The $27 billion will buy preferred stock in Citi. The money will carry an 8% coupon.

Will the money save Citi? It is still too early to tell. Not included in the deal is the bank's huge credit card portfolio which could show massive losses as the recession causes consumers to default on the obligations.

According to The Wall Street Journal, "In addition to $2 trillion in assets Citigroup has on its balance sheet, it has another $1.23 trillion in entities that aren't reflected there. Some of those assets are tied to mortgages, and investors have worried they could cause heavy losses if they are brought back on the company's books.'

Are the gargantuan losses at Citi over? They may not be. The Treasury now has to hold its breath and hope it will not have to keep writing checks to Citi to back its initial investment.

Douglas A. McIntyre is an editor at 247wallst.com.

The weekend is often the time when boards and the government decide the fates of companies and CEOs. It gives everyone involved at least two days, perhaps more, to weigh options and make decisions without the fury of stock market trading. A board of directors can start work on Friday at 4 PM and weigh options until 8 PM Sunday, when Asia opens, or 8 AM Monday if overseas trading is not an issue.

No one with any sense would believe that the board of Citigroup (NYSE: C), the FDIC, the Fed, and the Treasury are not working through this weekend, again. Most of the government people are so exhausted that those who leave with the current administration will be happy to have the rest.

A lot of options have been thrown around. But, the fate of Citi comes down to two things. At this point, the bank is believed to be in such bad shape that putting in a new CEO, even Jack Welch, would make no difference. Chapter 11 would wipe out too many firms that have non-insured deposits at Citi, too many companies that have loans with a bank that could be called, and too many common, preferred, and bond holders in the financial firm would lose everything.

That leaves the government taking over Citi the way it did AIG (NYSE: AIG) or forcing a sale as it did with WaMu or Wachovia (NYSE: WB).

Monday morning cold be quite a drama.

Douglas A. McIntyre is an editor at 247wallst.com.

Citigroup (NYSE: C) is considering putting all or part of the company up for sale. It is easy to say that the reason is the drop in its share price or a loss of customer confidence. It may not be that simple. The bank's stock has dropped as low as $4.39 yesterday. Five trading days before that, they were over $10.

Across the Atlantic, Barclays (NYSE: BCS), one of the world's largest banks, is trying to raise just over $10 billion to replenish is capital base. Next Monday, shareholders vote on whether or not to authorize the plan. Some observers believe that the firm will lose the vote and its finances will be pushed into in limbo. According to The Wall Street Journal, "If Barclays loses the vote, it could face a challenging time in raising capital." Much of the money is already lined up to come from Qatar and Abu Dhabi

Citi's board of directors may believe that their company could face a similar trial. There is no clear indication that the Treasury will put more money into the bank, although it might do that if Citi appeared to be in a liquidity crisis. But, the cost of that cash might be the bank's independence. The federal government might insist on a deal like the one the Fed has with AiG (NYSE: AIG) which nearly wiped out common shareholders. If Citi decides to go to the market for money, it may struggle to be successful

There is no question. Citigroup is watching the Barclays shareholder vote and knows that the outcome is far from guaranteed to be in the UK bank's favor.

Douglas A. McIntyre is an editor at 24/7 Wall St.

6 Stocks With Little Debt and Lots of Cash Flow
Big, reliable dividends never go out of fashion and these six stocks make the grade. They include the Gap, Altria, 3M, Intel, Barnes & Noble and Marathon Oil.
http://www.smartmoney.com/Investing/Stocks/6-Stocks-With-Little-Debt-Lots-of-Cash-Flow/

5 Potential Surprises to Years' End
2008 will go down as a disastrous year for most of the U.S. and it isn't ven over yet. With just a little over a month to go there is still time for more to happen. Here are five additional twists and turns that could still happen.
http://www.marketwatch.com/news/story/Five-potential-surprises-years-end/story.aspx?guid=%7BE9371851%2D72B4%2D4823%2DBF95%2DFFBE75925EB0%7D

General Motors (NYSE: GM), Ford (NYSE: F) and Chrysler executive will return to Congress on Wednesday. After facing less than a receptive Senate Tuesday, they will appear before a House committee today to plead for a "bridge loan" to give them a massive infusion of cash they need to stay afloat in their race against the clock. GM's CEO Wagoner "warned that the failure of the U.S. auto industry could lead to a loss of 3 million jobs within the first year and ripple throughout communities around the country," saying it would be a "catastrophic collapse." GM shares traded 2.9% lower and Ford's 2.4% lower in premarket action (8:04 am). GM shares have been plunging over 15% by midday trading and Ford's by nearly 25% as Senate lowers bailout expectations, seeking to compromise.

Boeing Co. (NYSE: BA) is delaying jet deliveries by as much as 10 weeks as it attempts to recover from a strike by its machinists, according to a report in the Wall Street Journal. BA shares were down 2.6%, with the market, by midday trading.

Toyota (NYSE: TM) -- The troubles in the auto industry don't affect just American carmakers.Toyota said Wednesday it will reduce production in the U.S. to cope with slowing sales there. It will stop production at all its plants in the U.S. and Canada for two extra days next month, and cut about half of 500 temporary workers at a plant in Georgetown, Kentucky by March. It will also reduce production of two models. TM shares were down 4% by midday trading.

As Detroit seeks a $25 billion bailout, the automakers are pinching pennies so hard that their fingers may start to bleed.

General Motors Corp. (NYSE: GM), which earlier this month axed 1,900 jobs, recently scaled back its presence at the Los Angeles Auto show and canceled its annual star-studded party at Detroit's North American International Auto Show, according to USA Today.

The largest automaker -- at least I think it still is, for now -- is keeping a tight lid on the distribution of office supplies. It's always a sign of a troubled company when the nice gel pens in the supply closet are replaced with cheap Bics that have a habit of exploding in your shirt pocket.

Of course, bonuses and holiday parties are things of the past for employees of GM, Ford Motor Co. (NYSE: F) and Chrysler LLC. Though these types of measures save money, they are like putting a kid's BandAid with a picture of SpongeBob on a patient with a gunshot wound. The reasons for these moves are as much political as financial.

Vikram Pandi, the CEO of Citigroup (NYSE: C), does not seem to be good at very much, but he is starting to get the hang of firing people. According to Reuters, "Citigroup Inc. plans to shed about 10 percent of its global workforce, a person familiar with the matter said Friday."

Maybe Pandit is responding to pressure he is facing to keep his own job. Citi's shares are below $10 for the first time in over a decade and have fallen much more than those of the other major U.S. money center banks. Wall Street still fears another year of write-offs as the big financial firm faces trouble with its portfolio of consumer debt , heavy with credit card customers who are defaulting in greater numbers as the economy worsens.

Pandit's greatest sin may be that he has not done any deal to spread his risks, broaden the bank's businesses, and transform the company. Several of his peer companies have done deals like Bank of America's (NYSE: BAC) purchase of Merrill Lynch (NYSE: MER) which brings in more deposits and an investment banking and money management unit.

At this stage there is nothing Pandit can do. He has let the problems at the bank go too far. The economy is failing at too fast a rate. Citi's troubled balance sheet is almost certainly getting more troubled.

It is not a bad bet that Citi ends up the way AIG (NYSE: AIG) has. If so, investors could lose another 80% or 90% of their money.

Douglas A. McIntyre is an editor at 24/7 Wall St.

It is beyond outrageous that the Bush administration has refused to disclose information about the collateral behind $2 trillion in bailouts.

Typical is the response from Federal Reserve Governor Kevin Warsh to Bloomberg News -- my former employer, which has filed suit to force the government to divulge the information -- regarding the news organization's request for information on the $29 billion loan between JPMorgan Chase & Co. (NYSE: JPM) and Bear Stearns Cos. to prevent the investment bank's collapse.

"The information at issue contains confidential commercial business information regarding securities pledged as collateral in connection with JPMCs acquisition of Bear Stearns," he wrote to Bloomberg.

So, the government's attitude is that taxpayers should not worry their pretty little heads about such questions like whether the deals being struck on our behalf are good ones. That's like putting a fox in a hen house or a mountain lion near a field of grazing sheep. Any animal metaphor you choose shows this is a bad deal.

Wall Street bankers can't seem to accept the fact that this is no longer the 1980s. Members of Congress are the "masters of the universe." What they say goes. For instance, I argued yesterday that American International Group Inc. (NYSE: AIG) should fire its CEO after another report of a company junket surfaced. The fact that the company thought it was justified is immaterial. Some very powerful members of Congress wanted the insurance company to keep its meetings at the Holiday Inn and there will be hell to pay for not doing so.

The same thing is at work with disclosure. Some powerful members of Congress want the process to be more transparent. Once Barack Obama takes office in January and a new Congress takes office, more details will emerge about the bailouts. Chances are members of Congress will not like what they see and heads will roll.

TheStreet.com's Jim Cramer says that's the real problem, and every little bit helps.

Many are decrying that the AIG (NYSE: AIG) (Cramer's Take) bailout now helps the holders of the collateralized debt obligations (CDOs) who bought insurance against them from AIG. The idea is simple: These CDOs are worth, in many cases, next to nothing depending upon the vintages, geographies and FICO scores, but they will now be paid back at pretty much face value -- AIG CEO Ed Liddy said the prices will be negotiated, but I don't see how they can get any less because AIG guaranteed it and the U.S. is not abrogating any of these guarantees.

It's an obvious windfall and still one more piece of the stinking puzzle that involves unwinding the bogus real estate finance that prevailed from 2004 to 2007. The bigger issue, though, is whether the government will then take over MBIA (NYSE: MBI) (Cramer's Take) and Ambac (NYSE: ABK) (Cramer's Take) -- I know people at those companies say they don't need it, so OK, they don't ... but let's say they do for the purposes of reality -- and have them make good on all of the credit default swaps they wrote against bad CDOs.

If the government is willing, they can buy several trillion dollars of these easily through this method and then sit on them and hopefully they will come back to some value.