Financials start to act …
After the negative surprise of GE … especially after they mentioned that they got hit within the last 2 weeks of March … due to the Bear Stearns turmoil …
We start to understand, why the financials start to move on to clean up their act … at least a bit.
And it seems to be AWFUL!!!
Citibank wants to get rid of 12 bln$ of LBO related debt … as their is no market at all for anything which is tied to real estate or mortgages. The “headline price” is 90cts on the dollar, but it is said, that Citi guarantees the first 20cts of possible losses and(!) provides cheap financing for the buyers … AUTSCH
So we are talking about a price of 70cts or even LESS!!!
Today, Goldman sells LBO related debt at 65cts on the dollar … crisis contained???
Deutsche Bank joins the LBO related debt sellers today with the “small” amount of 20 bln$ …
And Wachovia, 5th largest US bank … is about to announce a 7bln$ capital infusion … by selling new shares … at around 15% BELOW Friday’s closing price …
So … who talked about the possible end of the spooky times???
I can’t see it … even trying hard … 
Tags: Citibank, Deutsche Bank, financials, GE, Goldman, Wachovia
