Citigroup
Bank Stress Tests are a Complete Farce!
Let’s hear it for the bankers! They only need another $75 billion in extra capital by November in order to stay alive. Nice work, boys! The NY Times reported today that ten of the nineteen bank holding companies subjected to regulators’ stress tests, the banks deemed “too big to fail,” will need to raise extra [...]
Citigroup makes dough
4.17.09- Citigroup, the beleaguered former banking giant, posted its first net profit in more than a year. What the hell is going on? Didn’t they receive about $45 billion in bailout funds? Don’t they still have piles of toxic garbage on their balance sheet? This begs me to ask: what is the relevance of reported [...]
Feds Toss More Money Down AIG Hole
American International Group (AIG) made history this week by declaring a $61.7 billion loss for the fourth quarter of 2008. That equates to $22.95 per share, compare that to a stock price of less than a buck, (it was quoted at $0.34 today) and one can see the absurdity of our nation’s current financial situation. [...]
Feds Scheme to Nationalize Citigroup
It’s round three in the federal government’s fight to save Citigroup. Last weekend, officials from the Obama administration and Citigroup discussed the possibility of expanding the government’s ownership stake in the troubled banking giant by converting existing preferred shares into common stock. This development makes the question of nationalizing large, troubled commercial banks a matter [...]
Citigroup is back from the Dead – for now
It was another Sunday night rescue for the folks at the U.S. Treasury, the Federal Reserve and the newest addition to the cast of the Wall Street crisis and financial bailout drama, the Federal Deposit Insurance Corp. (FDIC). This time the dynamic trio swooped in to arrange a bailout of Citigroup, the struggling U.S. banking [...]
Investment Banks Lose a Bundle
What exactly constitutes a staggering loss these days? Just today, Morgan Stanley announced that it lost $3.7 billion on subprime mortgage-linked securities in the past two months – whoops.
These are actually write-downs of existing investments, and the company mentioned that their exposure to these toxic turds has been cut to a mere $6 billion. This [...]
Citigroup smacked by reckless bets
Citigroup reported a 57% decline in profits for the third quarter of 2007. Apparently it received some nasty wounds from souring fixed-income investments and sinking consumer loans. This sad quarter reflected approximately $5.9 billion of write-offs; once light was shed upon faltering securities prices and proprietary trades gone terribly wrong.
Much of the damage inflicted upon [...]
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