• 08 Feb 2010 at 3:30 PM

Citi’s Big Idea

Picture 112.pngThe guys at Citi are smarter than anyone else on the Street, which is why they are about to launch the first derivatives EVER that will pay out in the event of a financial crisis.
As Chris Whalen, at Institutional Risk Analytics, told us about the news: “It’s cute. Though a bit ironic coming from them.”Yes, it’s ironic and the mere concept could be funny if it weren’t that scary.


Considering that Citi stands in fourth position with $32 trillion in notional amounts of derivatives contracts as of the third quarter of 2009, according to the Office of the Comptroller of the Currency, and has yet to demonstrate that it has only the slightest idea about what it should do with them, this is rather startling.
Yes, financial innovation is inherent to functioning markets, but creating something based on something that obviously didn’t’ work out in the first place, (and/or that you have trouble understanding) seems ludicrous. Ain’t 2006 anymore people.

Comments (8)

  1. Posted by guest | February 8, 2010 at 3:35 PM

    I’ve had just about enough of this lousy Hindu.

  2. Posted by guest | February 8, 2010 at 3:37 PM

    Why did we save this bank and not Saab?

  3. Posted by Ps-Up, Hs-Down | February 8, 2010 at 3:55 PM

    @1
    yes, i as well wish he were muslim, sikh… at least one of those funny south indians with two first names (e.g, ¨Saj Johnathan¨).
    and Yaël, you can be such a bizouati at times.

  4. Posted by guest | February 8, 2010 at 3:57 PM

    At least LB is feline friendly -

  5. Posted by guest | February 8, 2010 at 4:41 PM

    Is this the product Shia Labeouf will be trading in Wall Street 2?

  6. Posted by guest | February 8, 2010 at 4:58 PM

    Is “financial crisis” is defined as a Citi bankruptcy?

  7. Posted by guest | February 8, 2010 at 5:12 PM

    stop trying to squeeze cash outta everything, vikram. One day a penis will pop out, hit you on your forehead, and then you’ll be sorry.

  8. Posted by guest | February 9, 2010 at 1:36 AM

    AIG was selling something like that. We bought a ton of ‘em from them.
    Just make sure you know someone high up at the Fed
    - LB