Goldman Sachs Ups Citigroup Writedown Prediction, Dares Us Not To Believe It

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Goldman Sachs analyst William Tanona is now saying that Citigroup will have to write off not 8, not 11 but $15 billion over the next two quarters on its collateralized debt obligations. Our question is, why stop at 15, which seems almost believable. You could probably go up to thirty, thirty five, before anybody would say, “Wait just a second.” It’s almost as though Bill didn’t get our memo on how he could better do his job. Anyway. Tanona’s note also included a downgrade of C to “sell” from “neutral,” and this pearl of wisdom: “The lack of leadership at this point in Citigroup's storied history could not have come at a worse time."
Unfortunately, at this juncture, it doesn't seem as though anyone's jumping for the job. As it happens, we've got someone in mind for the position, but don't want to name him just yet, as the bid will probably be taken more seriously in a couple months, when it's become clear beyond a shadow of a 50 billion dollar writedown that no one else will do it. The two hints we'll offer is that the candidate's going to be looking for work circa January 2010, and was the last vestige of class in that fleabag hotel known as 85 Broad. If you're able to hazard a guess, are you with me? Are you behind me? It could happen.
Citigroup Gets 'Sell' Rating, May Face $15 Billion Hit [CNBC]

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