US looks at bigger stake in Citibank

Dave Siciliano

Dave Siciliano

Final Approach
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Dave Siciliano
All" The WSJ is stating the the U.S. is looking at taking a larger stake in Citicorp tonight. This follows Sen. Chris Dodd's comments last week about nationalization of banks. Don't konw if you'll be able to read this link.
http://tinyurl.com/dlbmkt

The Journal ran an article Saturday where economist Nouriel Roubini (also called Dr. Doom) made the case that it's best to nationalize the banks now; then, sell them back to the private sector after solving liquidity problems and breaking them into smaller regional banks. Of course, this would most likely wipe out current bank common stock equity holders, and rumors of this sent the market down the last couple days.



Best,

Dave
 
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"The latest gallows humor among Wall Street traders: It is now cheaper to buy a share in Citigroup than to withdraw cash from one of its ATMs. Citigroup's shares closed at $1.95 apiece on Friday. "

;-)
 
Dave Siciliano said:
The Journal ran an article Saturday where economist Nouriel Roubini (also called Dr. Doom) made the case that it's best to nationalize the banks now; then, sell them back to the private sector after solving liquidity problems and breaking them into smaller regional banks. Of course, this would most likely wipe out current bank common stock equity holders, and rumors of this sent the market down the last couple days.
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Elizabeth made another post about this with a link to the article. Interesting.

http://www.pilotsofamerica.com/forum/showthread.php?t=27538
 
Didn't we go through all the trust-busting at the turn of the LAST century? In the end, that's what this all is, no? How did the banks get past the anti-trust concerns?

You know, I may be speaking too naively here, but if I did a government attorney job stint, I think I'd like to work in anti-trust. (famous last words...)
 
This is a great idea. Who better to trust with a private business that the government. Politicians never put their self interests before the good of the people.

Does anyone have any ideas on another country to take up residence that has a good quality of life in once they finally tank this one?
 
Actually, the current shareholders are already wiped out.
The problem with federal acquisition is the price and obligation to sell the repaired institution when the institutions again have positive value. The Chinese will own our banking system when we are done.....is this be better than the Federal government in the long haul....?!!
 
I go back and forth on this; certainly agree with Beth. The first problem is when we let banks have holding companies that didn't fall under former regulations. They all said they had to be big to compete with other overseas banks, but actually began lending through other than regulated mediums.

On the one hand, they got too big for the government to let fail; there was no government entity set up to tackle something that large. OTOH, I hate to see the same leaders that were in charge when this happened, still at the helm.

Best,

Dave
 
Reminds me of the line from Payback: We made a deal: if she'd stop hooking, I'd stop shooting people. I guess we were both aiming a little high.

Best,

Dave
 
My broker used to be with the brokerage arm of CitiCorp. A year or so ago I telephoned the brokerage, only to learn that Xxxxxx was no longer with the firm. ?????? He didn't tell me he was leaving. After learning of his new "ship" I called him; pure curiosity.

All he would say is the wall had handwriting; something was up and coming, it was time to move. I called the "Citi" arm and had all my accounts transferred to Xxxxxx's new ship.
Several months later he called me. "Come on down; it's time to change the diapers."???????

"No more stocks; equity funds," said he. "Guaranteed 9½%, payable quarterly," and we did it.
Nothing was said about "down the 'pike." But then, four days later the first wall of Wall Street came crashing down. As the market continued to dive for several months I kidded him about having left the "Citi." He said that the day he left Citi the stock was at $58.00; and the day of this conversation it was at Five and a Teeney. When the Madorf scandal broke I called Xxxxxx to ask if he'd put the funds "with Bernie." He roared; If I had, you wouldn't be seeing that round of quarterlies that paid yesterday." Whoever said, "Timing is everything," got it right.

HR
 
I haven't paid as much attention to this as you guys have. All I have to say is, Good, those SOBs are going down. Down to China town.

BTW: Bizza referenced the anti-trust suits of last century...it's not over. I'm S&T of the fat cats acting in collusion and skating for free on the public rink in their pvt tea party.
 
Lawreston said:
My broker used to be with the brokerage arm of CitiCorp. A year or so ago I telephoned the brokerage, only to learn that Xxxxxx was no longer with the firm. ?????? He didn't tell me he was leaving. After learning of his new "ship" I called him; pure curiosity.

All he would say is the wall had handwriting; something was up and coming, it was time to move. I called the "Citi" arm and had all my accounts transferred to Xxxxxx's new ship.
Several months later he called me. "Come on down; it's time to change the diapers."???????

"No more stocks; equity funds," said he. "Guaranteed 9½%, payable quarterly," and we did it.
Nothing was said about "down the 'pike." But then, four days later the first wall of Wall Street came crashing down. As the market continued to dive for several months I kidded him about having left the "Citi." He said that the day he left Citi the stock was at $58.00; and the day of this conversation it was at Five and a Teeney. When the Madorf scandal broke I called Xxxxxx to ask if he'd put the funds "with Bernie." He roared; If I had, you wouldn't be seeing that round of quarterlies that paid yesterday." Whoever said, "Timing is everything," got it right.

HR
Click to expand...

I'm sure glad you got things worked out. I'm hearing story after story of folks losing 1/2 of their brokerage account or retirement account net worth.

Best,

Dave
 
Last summer I was feeling a little stupid for having so much cash in my money market savings account and was thinking of moving it. Laziness rules. Good thing.
 
woodstock said:
Last summer I was feeling a little stupid for having so much cash in my money market savings account and was thinking of moving it. Laziness rules. Good thing.
Click to expand...

That's where my liquid assets are Beth. MMs that I researched and are well rated. I used to receive calls from agents at the firms holding those assets telling me I wasn't getting a good return---God bless 'em. Hope they can make a living in this environment.

Doesn't look as if this level on the S&P will hold. Guess we'll see. I am long a lot of real estate (fingers crossed). It's in an A- location and I'm still selling lots, but it is affecting us.

Best,

Dave
 
woodstock said:
Didn't we go through all the trust-busting at the turn of the LAST century? In the end, that's what this all is, no? How did the banks get past the anti-trust concerns?

You know, I may be speaking too naively here, but if I did a government attorney job stint, I think I'd like to work in anti-trust. (famous last words...)
Click to expand...
You're right we did do that. But banks and the media companies were able to obtain exceptions to those anti-trust laws starting the 80's. Just like the last time when we see huge companies that stifle real competition disasters happen.
 
Lawreston said:
...
"No more stocks; equity funds," said he. "Guaranteed 9½%, payable quarterly," and we did it.
Nothing was said about "down the 'pike." But then, four days later the first wall of Wall Street came crashing down. As the market continued to dive for several months I kidded him about having left the "Citi." He said that the day he left Citi the stock was at $58.00; and the day of this conversation it was at Five and a Teeney. When the Madorf scandal broke I called Xxxxxx to ask if he'd put the funds "with Bernie." He roared; If I had, you wouldn't be seeing that round of quarterlies that paid yesterday." Whoever said, "Timing is everything," got it right.

HR
Click to expand...
No, he put you with Stanford. :rolleyes:

Honestly, if there really was a way to get a guaranteed 9.5% in a SAFE investment do you think all of those governments, institutions and foreigners who were chasing the 6% return on mortgage backed securities would have been in them? :eek:
 
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