Citi going belly up???
Will Citibank become the 1st HIGH PROFILE VICTIM of the financial crisis?
Will this put the system to the REAL TEST???
Will that be an event, which triggers a REAL MELTDOWN???
Even a CURRENCY REFORM???
Citibank is still full of BIGHEADED OVERLEVERAGED STUPID Guys who still live in DENIAL …
Still a 60-times Leverage … Still no clue … Still every day BAD NEWS …
6.45$ … AUTSCH …
November 20th, 2008 at 07:32
If C is in such bad shape why was GS trying to merge with it? What does that tell you about the condition of GS. And C is not the only bank dealing with insolvency. You’ll see. Most of the major banks have ALREADY been nationalized covertly (through Fed facilities) according to Volcker. Do you think the Fed will ever gets its money back while these banks are still private? Not a chance. So even if C officially goes down – I dont expect there to be a real meltdown but actually players will give our a sigh of relief that a major source of insolvency is now taken care of. But that still leaves others…. Bush is such a moron. He is causing stocks to be hammered because of his inaction. And stock drops has and will continue to cause a real problem in consumer and business confidence worldwide. One man – the damage he has done – Austch! !!!
November 20th, 2008 at 11:35
The MSCI World has fallen 49 percent in 2008, headed for its worst year since records began in 1970, as writedowns and credit losses topped $966 billion in the worst financial crisis since the Great Depression.
More than $32 trillion has been erased from the value of global equities this year.
from http://www.bloomberg.com/apps/news?pid=20601103&sid=aLvPqdwU3x_o&refer=news
ten times the “bailout sums”!
what the bigger effect of this two items on leveraged firm like C or hf?
i remember this graph (very long timeframe):
http://en.wikipedia.org/wiki/Image:Longtermdowgoldlogtr1800.png
but if you speak currency reform it’s the same direction
DJ/gold <2 in some year
Austch! !!!
;o)
November 20th, 2008 at 23:34
Citi, AIG, Wachovia, Enron (!) … GE (!)
… all of them have taken a very similar path …
ONE BIGHEADED GUY WHO BUILD IT ALL UP …
November 20th, 2008 at 23:58
THEY ARE DOOMED …
LET THEM DIE …
Wallstreet Journal 20.11.08 3:39 P.M. ET
Citigroup Inc. officials are lobbying lawmakers and the Securities and Exchange Commission to reinstate the agency’s expired ban on short selling of financial stocks, to people familiar with the matter said.
Scrambling to reverse this week’s 40% plunge in its stock price, Citigroup also is urging federal officials to reinstate the so-called uptick rule, these people said. The uptick rule, which expired in July 2007, required investors to wait until a company’s stock rose before they could sell it short …
November 21st, 2008 at 10:05
Citi … 6.45$ ? Saw it yesterday below 5$ … more “Autsch” ? If you don’t need an amount of money I would buy them right now … But I don’t have money to spend it in stupid guy’s
… But right from the Risk/Reward-Ratio … why not … or a 2nd Lehman ?
Regards.
Mike
November 21st, 2008 at 10:07
… forgot something to say … If you don’t want spend the money on Citi shares you can spend it to me … it’s the same situation … LOL … Maybe I’m not so stupid … that’s the advantage.
Mike
November 23rd, 2008 at 10:56
http://www.nytimes.com/2008/11/23/business/23citi.html?_r=1&hp
background story … for those interested in details of Citigroups rush to risks in recent years …
November 23rd, 2008 at 11:15
… for all those interested in details of Citigroups rush to unscrutinized risks in recent years …
http://www.nytimes.com/2008/11/23/business/23citi.html?pagewanted=1&_r=1&hp
“In fact, when examiners from the Securities and Exchange Commission began scrutinizing Citigroup’s subprime mortgage holdings after Bear Stearns’s problems surfaced [in June 2007], the bank told them that the probability of those mortgages defaulting was so tiny that they EXCLUDED them from their risk analysis, according to a person briefed on the discussion who would speak only without being named.”
November 23rd, 2008 at 11:19
http://www.nytimes.com/2008/11/23/business/23citi.html?pagewanted=5&_r=1&hp
“In mid-September 2007, Mr. Prince convened the meeting in the small library outside his office to gauge Citigroup’s exposure.
Mr. Maheras assured the group, which included Mr. Rubin and Mr. Bushnell, that Citigroup’s C.D.O. position was safe. Mr. Prince had never questioned the ballooning portfolio before this because no one, including Mr. Maheras and Mr. Bushnell, had warned him.
But as the subprime market plunged further, Citigroup’s position became more dire — even though the firm held onto the belief that its C.D.O.’s were safe.
On Oct. 1, it warned investors that it would write off $1.3 billion in subprime mortgage-related assets. But of the $43 billion in C.D.O.’s it had on its books, it wrote off only about $95 million, according to a person briefed on the situation.
Soon, however, C.D.O. prices began to collapse. Credit-rating agencies downgraded C.D.O.’s, threatening Citigroup’s stockpile. A week later, Merrill Lynch aggressively marked down similar securities, forcing other banks to face reality.
By early November, Citigroup’s anticipated write-downs ballooned to $8 billion to $11 billion. Mr. Barker and Mr. Maheras lost their jobs, as Mr. Bushnell did later on. And on Nov. 4, Mr. Prince told the board that he, too, would resign.
Although Mr. Prince received no severance, he walked away with Citigroup stock valued then at $68 million — along with a cash bonus of about $12.5 million for 2007.”
November 23rd, 2008 at 11:24
A version of this article appeared in print on November 23, 2008, on page A1 of the New York edition.
http://www.nytimes.com/2008/11/23/business/23citi.html?pagewanted=1&_r=1&hp
November 23rd, 2008 at 20:38
@ Noble … It is the society … don’t blame one cowboy only …
@ matttt … As I can not eat Gold … I stick to trading
… but yes … problems are not over
@ Mike … I think about your proposal
@ Henning … They belong into PRISON … the worst thing about it … NOBODY can claim, he could not have known …
November 24th, 2008 at 02:57
where’s buffe when u need him?
November 26th, 2008 at 00:27
http://www.cnbc.com/id/15840232?video=939428909