portfolio.com - 11/23/2008
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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 together and hope that they float. Reportedly Lloyd ...
online.wsj.com - 11/23/2008
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online.wsj.com —
Inc. is nearing agreement with U.S. government officials
to create a structure that would house some of
the financial giant's risky assets, according to people familiar with the situation. While the discussions remain fluid and might not result in an ...
(more)
Citigroup, U.S. in Talks to Create 'Bad Bank'
nytimes.com - 11/23/2008
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nytimes.com —
Federal regulators were considering a new rescue for
Citigroup on Sunday, a step that could mark a
third leg of the government’s broader efforts to bolster the nation’s financial industry. >
(more)
Plan Begins to Emerge to Rescue Citigroup
Comments
Blog Reactions
"Why Sheila Bair Must Resign"
Economist's View —
... as I can tell it is not) then
any solution to the financial crisis involves removing Sheila Bair. She is an
obstacle to trust.
It is simple Sheila. Resign now. You owe it to your country. I'm not sure I agree with his diagnosis of the fundamental problem, but the real intent here is probably policy advice - a statement of what not to do this time - as much as anything else (or can be taken in that light).
Felix Salmon:
Who Will Take Over Citi?: ...Possibly more likely is the idea that Citigroup will be ...
The Citigroup Betting Pool
The Baseline Scenario —
... 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. ...
Citi update - merger, asset sale, or good bank-bad bank?
FT Alphaville —
... in the bad assets if the plans go through, that doesnt mean it will pay citi $100 billion, depending on the final valuation of those assets. According to people with knowledge of the discussions between Citigroup and the government, the plan for Citi resembles the orginal TARP proposal, in which the government would buy bad assets for financial firms at some price higher than what’s being offered in the market. Related links: The Citigroup betting pool - The Baseline Scenario Who will take over Citi? - Felix Salmon
Related Content
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 ...
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 ...
WSJ Reports Citi and Government Approach New Agreement
economicdiscourse.com 2/27/2009 — The foreign markets and futures have already began to sell off on the news, they must not like this "new plan" and neither do we. Although these are preliminary reports, it looks as if the government's conversion from preferred stock to common could be limited by private investor interest (which ...
Le Citi Toujours Dormer...
delong.typepad.com 11/24/2008 — Why oh why can't we have a better press corps? Eric Dash and Julie Creswell write that:
Citigroup had poor risk controls.
As a result, the bank owned $43 billion of mortgage-related assets that it incorrectly thought were safe.
They weren't. ...
Did Rubin Kill Citi?
portfolio.com 11/24/2008 — The vipers' nest of recriminations and finger-pointing that is Citigroup has now turned on the one man who was until now untouchable, Bob Rubin :
Citigroup insiders and analysts say that Mr. Prince and Mr. Rubin played pivotal roles in the ...
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 ...
Citi Bailout
ritholtz.com 11/24/2008 — The Bailout of Citigroup moves forward (Is this book ever going to be finished?):
“Treasury and the Federal Deposit Insurance Corporation will provide protection against the possibility of unusually large losses on an asset pool of ...
Business this week —
The Economist: Full print edition 11/20/2008
Citigroup, which has recorded a loss in each of the past four quarters, said that it would cut 52,000 jobs, on top of the 23,000 already announced since the beginning of the year. The latest reduction will leave Citi with around 300,000 employees. ...
Bailout Monday is Back —
The Big Money 11/24/2008
Following round-the-clock weekend negotiations, the federal government late on Sunday agreed to bail out yet another bank, this time giving the troubled Citigroup a $20 billion lifeline in the form of a direct investment and guaranteeing $306 ...
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