Weighing down [Citigroup's] shares has been the Treasury Department's decision last week not to buy troubled assets from banks. Citigroup's balance sheet includes battered securities and loans that many investors hoped could be offloaded to the government.What's sad is that Citigroup has already gotten billions from the government - so it's not like Paulson changing tactics stiffed them. You wonder how many troubled assets they have - and just how troubled they are.
Friday, November 21, 2008
Pity Citi
CJR's Ryan Chittum is betting Citigroup is about to have one of those seismic events that makes everyone change their stationary.
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Read 1.2 trillion assets, 41 trillion potential/possible liabilities.
That 40 to 1 leverage thing again.
Not from a reliable source and much of that liability is likely hedged, but even so.
Also seems to be not the only bank in that situation.
If the Fed's 25 billion installments are being thrown at those kind of liabilities - you have to wonder what the Fed saw that made that step make any sense at all.
Or if it was just a bluff.
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