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When Citigroup goes, the abyss is next

Discussion in 'Political Discussion' started by PressCoverage, Nov 1, 2008.

  1. PressCoverage

    PressCoverage Banned

    Sep 25, 2005
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    the "granddaddy of 'supermarket' banks" is also the most corrupt... cooked books galore...

    UBS widens Citigroup's Q4 loss estimate

    Oct 31 (Reuters) - UBS widened its loss view on Citigroup Inc's (C.N: Quote, Profile, Research, Stock Buzz) fourth quarter saying the company's far reaching global footprint could take a harder hit from the spreading financial crisis than estimated earlier.

    The brokerage also slashed its 2009 profit view on Citigroup by 80 percent.

    "We expect the pace of credit deterioration outside the U.S. to accelerate, and what had been the engine of growth of its (Citigroup's) consumer business to slow," UBS analyst Glenn Schorr wrote in a note to clients.

    Contraction in the U.S. and western European markets and slower growth in other markets added to the worst capital markets backdrop in the U.S. since the start of the fourth quarter. This will cause higher credit losses and further writedowns of remaining troubled assets at Citigroup to go on into 2009, the analyst said. Schorr also expects Citigroup to be hit by an even more protracted slowdown in receivables growth globally, including the United States, as consumers pull back on spending over the near-to-medium term.

    World's Scariest Stock: Citigroup
    By Morgan "Haunted" Housel
    October 31, 2008

    What scares me about Citigroup (NYSE: C)?

    Let's start with the obvious ... it's a bank.

    I could probably stop there and gain the agreement of most investors, but I'll try to elaborate.

    The beginning of the end

    To understand the magnitude of Citi's woes, we have to go back to the late '90s. The repeal of the Glass-Steagall act -- a depression-era law designed to protect investors -- paved the way for Citicorp to merge with Travelers Group, forming what we now know as Citigroup ... the granddaddy of "supermarket" banks.

    The idea seemed brilliant at the time: Slap every financial product you can think of together, forming a do-it-all behemoth where average Joes could deposit their paychecks, insure their car, and plan for retirement, while investment mavens could structure CDOs, form IPOs, peddle ARSs, and advise CEOs on mergers and acquisitions, all under one roof.

    For about a decade, it worked beautifully. Shares tripled from 1997 to 2007, buoyed by juicy dividends. At one point, Citigroup even held the glamorous title of "world's largest company," a colossal giant home to trillions in assets and tens of billions in profits that could do no wrong.

    And then the house of cards crumbled.
  2. MrBigglesWorth

    MrBigglesWorth Veteran Starter w/Big Long Term Deal

    Apr 28, 2006
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    +32 / 0 / -0

    eventually when all these banks crumble will all our credit card debt and mortgages be owned by the govt?
  3. PatriotsReign

    PatriotsReign Hall of Fame Poster

    Jan 15, 2007
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    +723 / 9 / -27

    #18 Jersey

    To me, the only good part about watching some of America's largest corporations go belly-up is that these are the companies run by people who thought they were as important as governments. That they "provided" jobs and wealth to the fortunate people who worked for them. I like seeing these companies crawling to us now begging to be bailed out.

    Only in this case, we better say screw you! and "bye-bye":D

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