Charlie Gasparino reports that Citi officials are “working on a plan that could include a capital injection from the Federal government–among other possible ideas. The details have yet to be hammered out and it’s not clear when such a plan would be announced.” The situation is fluid.
Abosultely NOT, the ADI New Alpha Hedge Fund platform looks like shit from here
Citi just sent out this email to their banking customers at 2:10…..
Good news! Citibank is participating in the FDIC’s Temporary Liquidity Guarantee Program. Through December 31, 2009, all of your non-interest and interest bearing checking deposit account balances are fully guaranteed by the FDIC for the entire amount in your account. *
And as a reminder, in October the FDIC increased the amount of insurance on eligible savings accounts — such as savings, market rate, money market accounts, club and holiday accounts, and certificates of deposits — from $100,000 to $250,000 through December 31, 2009.**
To learn more about FDIC insurance, visit the agency’s web site at http://www.fdic.gov or call a Citibank representative at 1-800-374-9700. You may also call the FDIC at 877-ASKFDIC (877-275-3342) or TDD 800-925-4618.
@2
Didn’t get any such email, perhaps you’ve been spammed?
Gasbag wasted about 300 words to essentially say…nothing.
http://www.portfolio.com/views/blogs/market-movers/2008/11/23/did-rubin-kill-citi
Haha. Conde Nast has just come out in defense of Rubin. Wow, liberal NY publisher defending a Clinton homeboy. There’s objective journalism for you.
On the other hand, maybe having a gov’t apparatchik on the board isn’t a bad idea at times like these when the tin cup is out.
- Dick Mangina
@4, yea that’s it you douchenozzle, you sure got it figured out. Why don’t you go turn on fox news to hear the latest on obama’s plan to turn the US into a workers paradise and replace the whitehouse with a mosque…..fucktard.
http://query.nytimes.com/gst/fullpage.html?res=9C0DE7DB153EF933A0575AC0A96F958260
@5 You do realize that Clinton created this whole mess, don’t you?
- Dick Mangina
why doesn’t the FDIC or Treasury let them buy a put option on all the asset backed loans they have on and off their balance sheet? The stock collapsed because the losses are unquantifiable as no one knows how bad real estate markets and consumer credit will get in the future. give the street a maximum loss and you will know exactly how much capital they will need. then let the government tell the world they’re good for the money if Citi needs it. end of problem
Throwing good money after bad.
@7 they don’t have enough capital to buy such a put option at any price close to market. Even if they could come up with the cash, it would clearly show that they are not a feasible institutions. In theory, the “equity” should be at least equal to the cost of the above mentioned put.
C is so BK. So is GS. You all should stop looking at income statements and start looking at balance sheet and cash flow statements.
Why should the taxpayers give the street a “maximum loss”. The whole place should be burnt to the ground with the void filled with new institutions with no legacy issues.
@9 – you make a good point. look at what happened to the reinsurance industry after 9/11. there was a rash of new companies formed without legacy issues and they have all performed well. the problem is management. most of the guys running the new reinsurance companies were pulled out of retirement. if we started a bunch of new financial institutions, who would you get to run the shop? the same guys that left 2-3 years ago – they were the ones who got them in this mess…
@10 Looks like the process has already begun…
http://www.crainsnewyork.com/apps/pbcs.dll/article?AID=/20081121/FREE/811219967/1048/toc
@5
is that all you got? nice.
I gave Bess an injection last night if you know what I mean.
This just in on the Reuters newswire…
http://uk.reuters.com/article/businessNews/idUKTRE4AM2CH20081123
Reuters – White House says unaware of any Citigroup rescue talks
White House spokeswoman Dana Perino said on Sunday she knew of no talks going on between banking giant Citigroup and the federal government for financial aid…
Somali pirates reported to inject capital into citi.
@9 what makes you think you understand what’s on the balance sheet of citi or any bank using a gigantic arbitrage model?
Most people don’t realize that freddie and fannie would never run out of capital if people looked the other way. last time i checked they get 25 days worth of interest on payments and prepayments.
@14
So Gasbag is making this up?
Now he says expect Gov to buy $100 billion of toxic assets from C.
“The government is looking to buy substantial amount of assets from Citi like a good bank, bad bank structure. The government will absorb much of the losses for Citi if there are losses and Citi would issue preferred stock to the government.
The Feds could buy more than $100 billion in the bad assets if the plans go through. But that doesn’t mean it will pay Citi $100 million. The deal is not finalized but could be announced tonight.”
http://www.cnbc.com/id/27873985
Gasbag now says Feds may buy $100 Billion of toxic assets from Citi.
@17 – Don’t know, but the Gasbag story mentioned by @18 has now been removed from CNBC.com front page, and will probably soon disappear from their search index.
Some wacky shit going down…
The FT is not so specific as Gasbag.
“Citigroup’s board was on Sunday locked in crisis talks debating the future of the bank and its top management, as hopes faded it could ride out the relentless pressure on its share price without a bold announcement before trading opens on Monday.”
…
“According to one person consulted on the bank’s plans, Citi’s main move could be to create a “bad bank” along the lines used by UBS last month.”
I can only say that the discussions are on-going and more intense today than yesterday.
@19
No, Gasbag’s story is still there. The Update is updated again to say:
“Update: The government is looking to buy substantial amount of assets from Citi like a good bank, bad bank structure. The government will absorb much of the losses for Citi if there are losses and Citi would issue preferred stock to the government.
The Feds could buy more than $100 billion in the bad assets if the plans go through. But that doesn’t mean it will pay Citi $100 million. The deal is not finalized but could be announced tonight. Reports from Washington say the White House is unaware of any government talks with Citigroup. It also decline comment on whether President Bush would back a government rescue of Citigroup.”
(Bush left Peru today, plus he has no clue.)
It is probably a good thing that people in the White House don’t know whats going on.
What’s the dealio?
@22 – After 8 years, why start now?
vik is stepping down. Wideclops appointed CEO. Bess will head investor relations and will naked mudwrestle with Meredith Whitney.
I just injected genetic capital into your moms.