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Prediction: Citigroup will collapse within a month

Discussion in 'Political Discussion' started by PressCoverage, Nov 20, 2008.

  1. PressCoverage

    PressCoverage Banned

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    when this giant goes, watch out below!

    The worst of the cooked books...

    Citi shares in record slump, CDS spreads widen

    Bank takes on $17 billion of SIV assets, shuts another hedge fund

    By Alistair Barr, MarketWatch

    SAN FRANCISCO (MarketWatch) -- Citigroup Inc. shares slumped a record 23% Wednesday and credit-default swap spreads on its debt widened after the bank took on more than $17 billion in assets from structured investment vehicles and shut another hedge fund.

    Citi shares slumped 23% to close at $6.40. The previous biggest one-day drop was 21.7% during the market collapse on Oct 19, 1987.

    ...

    "Citigroup showed the greatest deterioration on news of hedge fund closures and SIV takeovers," David Klein, manager of CDR's credit indexes, said in an e-mail.

    Citi is shutting down a corporate credit hedge fund called Corporate Special Opportunities after it slumped more than 50% in October.
     
  2. PatriotsReign

    PatriotsReign Hall of Fame Poster

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    #18 Jersey

    Ok PC...You've got my interest so bump this thread in 30 days whether you're right or not. I agree, things are looking pretty dire for these guys. Imagine working for them right now just waiting for the hammer to fall.:(
     
  3. PressCoverage

    PressCoverage Banned

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    google Citigroup, Banamex, and drug trade... this multi-national is among the globe's most corrupt... they're going down, and they don't deserve a GD penny...

    anyone paying attention noticed Wells Fargo blocked Citi's desperate buyout attempt of Wachovia last month... they're F'd...
     
  4. Lifer

    Lifer Banned

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    Great. I owe them about 22,000. Does this mean im off the hook? :)
     
  5. PressCoverage

    PressCoverage Banned

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    if no one buys their debts? i dunno... but maybe...
     
  6. Lifer

    Lifer Banned

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    well wouldnt that be ironical..........maybe i'll outlast citigroup and bank of america. life is strange.
     
  7. PressCoverage

    PressCoverage Banned

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    Last edited: Nov 21, 2008
  8. MrBigglesWorth

    MrBigglesWorth Veteran Starter w/Big Long Term Deal

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    it would be very ironic that if these companies fail and no one buys their debt it resets us all to zero i regards to credit cards.

    fight club is a good flick
     
  9. PressCoverage

    PressCoverage Banned

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    Citigroup Failure Imminent

    by Martin D. Weiss, Ph.D. 11-23-08
    Citigroup Failure Imminent | Money and Markets: Free Investment Email Newsletter

    Citigroup, the nation’s second largest banking conglomerate, is on the brink of failure.

    Its stock price collapse is the canary in the coal mine, wiping out over nine-tenths of the company’s market cap since its 2007 peak, decimating two-thirds of its value just last week alone.

    At the same time, the collapse in its market cap is also the bank’s nail in the coffin, making it virtually impossible for it to raise the capital it desperately needs to save itself.

    If it fails, it will be, by far, the largest banking disaster in history, involving $2 trillion in assets. That makes it approximately six times larger than Washington Mutual and three times bigger than Wachovia.

    Moreover, the prospect of a failure by Citigroup poses far greater challenges to regulators than a typical large bank. Due to its massive derivatives holdings — side bets on interest rates, currencies, and the probability of defaults by other large corporations — it could be extremely difficult to save Citigroup without serious disruptions, raising serious questions about the global banking system and the world economy.
     
  10. PressCoverage

    PressCoverage Banned

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    and, no sooner do i post that, comes this.... the latest bailout:


    Bloomberg.com: Economy

    Nov. 24 (Bloomberg) -- Citigroup Inc. will have more than $300 billion of troubled mortgages and other assets guaranteed by the U.S. government under a federal plan to stabilize the lender after its stock fell 60 percent last week.

    Citigroup also will get a $20 billion cash infusion from the Treasury Department, adding to the $25 billion the bank received last month under the Troubled Asset Relief Program. In return for the cash and guarantees, the government will get $27 billion of preferred shares paying an 8 percent dividend.
     
    Last edited: Nov 24, 2008
  11. PatriotsReign

    PatriotsReign Hall of Fame Poster

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    #18 Jersey


    Well....you WOULD have been right PC!
     
  12. MrBigglesWorth

    MrBigglesWorth Veteran Starter w/Big Long Term Deal

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    i seriously think these bailouts are just to ensure that the average citizen continues to be a host that these parasites can leach off of.

    if citigroup went out of business then all that outstanding debt might have been wiped away?
     

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