When the music stops - Citigroup

Citigroup are the largest bank in the world, right? Followed by Bank of America?

Erik Prince of Blackwater will see to it that they don’t fall

Please explain.

They announce 6 billion of losses and tell investors “that’s all folks”. A few days later it’s announced that they are leading a consortium to bail out SIVs. I wouldn’t be surprised to hear that they are in trouble.

Erik Prince’s brother is CEo or whatever of CitiGroup.

well the WSJ today wryly observes as follows, here

Citi together with Jp and BoA have announced a special fund valued at $100bn to take the crap off their balance sheets , pronto

If the fund finds itself in a spot of bother they may have to take it back on again.

Citi made some $20bn profit last year to put things in perspective.

The Dow is down over 1% as I write :frowning:

Lots of ifs and buts and with Citi smack bang in the headlights !

Update on Japanese bad debt restructuring - 1997
digitalcommons.libraries.columbi … =japan_wps

Yah but the feckin Japs took 7 years to create the workout entity while the yanks …in all fairness…took 7 weeks .

But half of that UFO will probably be written off when its convenient to so do and when the US taxpayer underwrites it …as I fear they will.

Still, thats a whole country that won’t get invaded for cashflow reasons so it ain’t all bad news :slight_smile: 8) :slight_smile:

A piece from Gary North (he sounds a bit like WTTR) (and before the newbie thought police jump in, I mean that in the nicest possible way) that takes Chuck Prince to task for his confidence:
lewrockwell.com/north/north571.html

Could Citi be insolvent? Or are they just about to sack Prince?

EDIT: add more likely reason for board meeting! :blush:

And from Bloomberg:

Merrill, Citigroup Debt Risk at 5-Year High on Subprime Concern
bloomberg.com/apps/news?pid=20601087&sid=aKkkvCzXCNdw&refer=home

Of course, we should really have a thread on Merrill, as they seem further up the creek (well beyond the paddle shop). Only a man in a helicopter can save them now!

Came across this directory in a random search:

Anyone have any idea what section 23a means? (in simple language) and why Citi would be looking for two exemptions?

nakedcapitalism.com/2007/10/ … on-in.html

In simple terms, it allows banks to use capital to bail out their overstretched inhouse brokers. Why this is bad? It uses bank capital and therefore lowers the protection for investors.

And that fact that Citi has done it twice? Or does the 30% limit apply to it’s overall bailout of it’s subsidiaries? (and not to each of them).