• 12 Jun 2009 at 11:18 AM

Citi Not Afraid Of A Little Disclosure Risk

By Greg Michaels

Citi.jpgWhile UBS is busy trying to minimize the damage from its principal protected note lawsuits, Citigroup is forging ahead with its PPN offerings. Citi has sold $211 million of the notes so far in 2009 and is not worried about investors mistaking the words ‘principal protection’ for safe.

Notes tied to the performance of the Russell 2000 index, which pay a coupon of 3 percent, are “subject to the credit risk of Citigroup Inc.,” the prospectus says in five places. It says the notes are not insured by the FDIC but are “fully and unconditionally guaranteed by Citigroup Inc.” It does not provide Citigroup’s credit rating.

Citigroup Sells ‘Principal-Protected’ Notes That Burned UBS [Bloomberg]

Comments (11)

  1. 1
    Posted by guest | June 12, 2009 at 11:41 AM

    Congratulations, Greg.
    You’ve managed to force DB’s readership to go on a strike vis-a-vis your posts.
    -TGFHouston

  2. 2
    Posted by guest | June 12, 2009 at 11:42 AM

    it’s probably true but is it news?

  3. 3
    Posted by guest | June 12, 2009 at 11:44 AM

    Greggers,
    I see your company is offering a free career change assessment. Your dad and I feel it would be in the family’s best interest if you looked into it.
    Mom

  4. 4
    Posted by guest | June 12, 2009 at 11:55 AM

    Maybe all DB writers should go on strike until the DB commenters get more creative and, you know, funny.

  5. 5
    Posted by guest | June 12, 2009 at 11:59 AM

    ANUS

  6. 6
    Posted by guest | June 12, 2009 at 12:04 PM

    Pretty standard stuff really. Luge lessons, selling PPN with 100 page OS’s
    pretending everything is fine in internal emails to employees, summers in Rangoon, …

  7. 7
    Posted by Anal_yst | June 12, 2009 at 12:07 PM

    dude all these product offering summary have multiple, large-font, clear-language disclosures that the protection is subject to underwriter’s credit risk and only applies if held to maturity, not fdic insured, etc, etc ad nauseum. Even the most daft FA can relate that to the client, even if he/she has absolutely no idea wtf a swap is or how the security actually works.

  8. 8
    Posted by guest | June 12, 2009 at 12:11 PM

    Gregory, your next post better have some Max Waters side boob, because your posts today have extracted all of the positive benefits of my morning coffee, and my eyelids are starting to droop again.

  9. 9
    Posted by guest | June 12, 2009 at 12:12 PM

    Gregory, your next post better have some Max Waters side boob, because your posts today have extracted all of the positive benefits of my morning coffee, and my eyelids are starting to droop again.

  10. 10
    Posted by guest | June 12, 2009 at 12:19 PM

    Gregory, your next post better have some Max Waters side boob, because your posts today have extracted all of the positive benefits of my morning coffee, and my eyelids are starting to droop again. Good luck.

  11. 11
    Posted by guest | June 12, 2009 at 12:51 PM

    Greg,
    I’m sorry I left you and your mother all those years ago. I want to redeem myself by driving you across the country in my big rig and winning the world arm wrestling championship.
    -Lincoln Hawk (your biological father)

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