brontecapital.blogspot.com - 11/21/2008
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I suggested that Sheila Bair might seize Citigroup precisely because it is the sort of irrational, arrogant and dumb thing she does. She did after all force the issue at Wachovia – signing a government guarantee (to Citigroup) even though a fully private sector solution was available. But ...
online.wsj.com - 11/21/2008
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online.wsj.com —
Executives at Citigroup Inc., faced with a plunging
stock price, began weighing the possibility of auctioning off...
pieces of the financial giant or even selling the company outright, according to people familiar with the matter. The internal ...
(more)
Citi Weighs Its Options, Including Firm's Sale
portfolio.com - 11/23/2008
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portfolio.com —
As John Carney notes today, Citigroup's market capitalization
is $21 billion; that of Goldman Sachs is $20...
billion. Can anyone say "merger of equals"? Nothing's unthinkable in this market, not even the idea that you can tie two rocks ...
(more)
Who Will Take Over Citi?
Comments
Blog Reactions
Further Reading
FT Alphaville —
... to separate you from your money is call a press conference.” - Now, if Sheila Bair were to confiscate Citigroup… - Neel Kashkari, “ ...
links for 2008-11-21
Economist's View —
Not a good sign: the Treasury once again can borrow for free - Brad Setser
Are we seeing the end of a 15-year stock price bubble? - Stephen Gordon
Food prices and food security: Don’t blame liberalisation - voxeu.org
Sheila Bair and seizing Citigroup - Bronte Capital
A thousand of Keynes’s (and my) words - Edge of the American West
The Big Easing - Models & Agents
A Gaping Hole in the Safety Net - Howard Rosen
Sen. James ...
the death of citi
Decline and Fall of Western Civilization —
citi has been spiralling for days, and it looks like it could be taken over this weekend. the big question is "how?" clusterstock forwards john hempton's critique of what an FDIC takeover might look like. It is open to Sheila Bair (and her fellow regulators) to seize Citigroup (deeming it unsound) and to leave at the holding company – and worth near zero – all the equity, preferred shares and holding company debt obligations. Indeed this is precisely what she did at Washington Mutual. What she did once she might do again. This ...
Be Careful, Ms. Bair
Toro's Running of the Bulls Market Blog —
Your policies are having massive unintended secondary and tertiary effects. From Bronte Capital. I suggested that Sheila Bair [Chairwoman of the Federal Deposit Insurance Corporation] might seize Citigroup precisely because it
is the sort of irrational, arrogant and ...
"Why Sheila Bair Must Resign"
Economist's View —
... that Citigroup will be nationalized this weekend, with
shareholders being wiped out. John Hempton today sketches out what might happen if
bondholders got wiped out at the same time; I'm reasonably confident that in the
wake of the Lehman debacle there's no way that Hank Paulson would let that
happen. ...
The Citigroup Betting Pool
The Baseline Scenario —
... The wildest idea is that Citi might merge with Goldman or Morgan Stanley, although this is only floated by unnamed analysts. What such a merger would accomplish is unclear to me. (Although various people have come up with the name for a Goldman-Citi merged entity.)
Felix Salmon has a quick rundown with a lot of links (some of which I reproduced below); he thinks that at least creditors will not get wiped out to avoid a repeat of Lehman.
John Hempton explains how creditors might be wiped out and why it would be a bad ...
Related Content
Citigroup, Whachovia, Sheila Bair and a post I didn't make...
brontecapital.blogspot.com 11/14/2008 — Is Citigroup going under? Is Sheila Bair's erratic behaviour really her trying to save Citi? Readers will know that I think pretty lowly of the head of the FDIC. Maybe I am wrong. I have been puzzling this weekend – trying to work out what is going ...
Citi Rescue Talks Underway
nakedcapitalism.com 11/23/2008 — The market shrugged off the prospect of a Citigroup meltdown and focused instead on the leak that Timothy Geithner was Obama's pick for Treasury Secretary. Citi fell another 20%, its shares dropping below $4. Have banking catastrophes become so ...
"Why Sheila Bair Must Resign"
economistsview.typepad.com 11/23/2008 — John Hempton is still unhappy with Sheila Bair:
Why Sheila Bair must resign, Bronte Capital : Sheila Bair is doing a fine job
at one thing – modifying mortgage terms in the mortgages she has taken over –
particularly those at Indy Mac. As a ...
WSJ: US Agrees to Bail Out Citi
nakedcapitalism.com 11/23/2008 — Oddly, I saw this comparatively late (about an hour), and no notice Bloomberg, which is perfectly willing to pick up news reports by competitors with attribution, and Asian markets ex Japan (closed today) were still in negative territory, although ...
Citigroup Bailout Raises Viability Questions For Entire Banking System
globaleconomicanalysis.blogspot.com 11/25/2008 — Still more details are emerging from the weekend bailout of Citigroup . And in what is no surprise in this corner, it appears Citigroup is not well capitalized and Faces Pressure to Slim Down . The government rescue of Citigroup Inc. reversed the ...
Citigroup
krugman.blogs.nytimes.com 11/24/2008 — Mark Thoma has the rundown of informed reactions. A bailout was necessary - but this bailout is an outrage: a lousy deal for the taxpayers, no accountability for management, and just to make things perfect, quite possibly inadequate, so that Citi will ...
Credit Risk Rises on Citigroup Breakup Speculation
globaleconomicanalysis.blogspot.com 11/21/2008 — I have been saying for over a year that Citigroup would not survive in one piece. That option is looking increasingly likely as the Citigroup Board Weigh Options . Citigroup Inc.'s board meets today to discuss the bank's options after Chief Executive ...
Citigroup - Somebody Please Say "Game Over"
informationarbitrage.com 1/14/2009 — From the Wall Street Journal Online : Until recently, Citigroup Chief Executive Vikram Pandit had
repeatedly backed the company's "universal bank" model. But with
directors and executives now bracing for a fourth-quarter operating
loss of at least ...
Citi on Its Way to Breakup?
nakedcapitalism.com 1/12/2009 — The Wall Street Journal tonight says, " Citigroup Takes First Step Toward Breakup ." But what does that mean, exactly? Or had the Journal gone a bit far with the notion that the bank is doing some way, way overdue housecleaning? The eye-popping bit ...
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