Until recently, Citigroup had fiercely opposed proposals to give bankruptcy judges latitude to change the terms of mortgages. Its about-face comes after the federal government has pumped $45 billion into the company since last fall. The government is now keeping the company on a tight leash.
The government had also previously agreed with Citigroup "to guarantee about $269 billion in highly illiquid mortgage investments," according to an account in the New York Times
. That does make for a pretty tight leash. Senator Dick Durbin's comment on this shows how far through the looking glass we have gone: