Yes, yes. We know. We were on the conference call too. You guys are totally fine. Lots of credit. No problems. Just a little hitch. Nothing to fear but fear itself.
Hey, wait. What's this...?
Examiners with the Federal Reserve have questioned Wall Street counterparties about their exposure to debt and other holdings of Citadel Investment Group, The Wall Street Journal said on Saturday, a report Citadel denied.
Citing people familiar with the matter, the Journal said the Fed questioned the counterparties in at least two instances in recent days.
In recent days, examiners with the Federal Reserve questioned Wall Street counterparties in at least two instances about their exposure to debt and other holdings of Citadel Investment Group and Sankaty Advisors LLC, the credit-investment affiliate of private-equity firm Bain Capital, said people familiar with the matter.
The rumors were so acute for Citadel that its chief Kenneth Griffin held a conference call Friday afternoon for holders of $500 million in Citadel debt. As many as 1,000 other callers jammed a listen-only line for the call, leaving Citadel scrambling to add more phone lines.
Citadel in recent days has repurchased as much as 20% of its debt held by outside investors, according to a person familiar with the transaction.
Citadel Seeks to Reassure Investors [The Wall Street Journal]
In other words:
"This firm has a history of facing adversity and delivering. We have a long track record of pulling together when times are tough and then taking advantage of global opportunities," he continued. "We are now on the right track to put these last two quarters behind us."
Oh, wait. That was Dick Fuld.