Citibank

[Purron]

I realize there is already a thread devoted to bank stocks. However, my question pertains specifically to Citibank. I noticed it closed at $19.69 today which blew me away. There is chatter about continued losses. What do you think will happen with Citi? More infusion of capital from overseas investors, merger with BofA or another mega bank, or something else?

 

[al_bundy]

there was a story a week or so ago where the arabs basically said we are only going to invest more money to pick up the pieces at firesale prices

 

[Purron]

I read that story too. I am interested in Citi because if it hits the dirt, I believe it may send shockwaves throughout an already dicey market. I believe Citi may be important in what happens to the market in the next year or more.

 

[prgsdw]

Hard to get excited about Citi here though for me. It seems like a broken business model. Tough to spin off pieces to raise capital when private equity deals have evaporated and all the other financial firms are firefighting their own balance sheet. I'm going to steer clear myself.

 

[dumpster56]

The City is in big trouble. It might go bust.

 

[twaddle]

They still have $37B worth of subprime on their books. With book value of around $100B, I guess that means they shouldn't fall much more than 37% from here.

 

[al_bundy]

The City is in big trouble. It might go bust.

Citi almost goes bust every 10 years, this time it's just a bit early or the telecom loan thing didn't really hurt them. don't remember.

 

[al_bundy]

I read that story too. I am interested in Citi because if it hits the dirt, I believe it may send shockwaves throughout an already dicey market. I believe Citi may be important in what happens to the market in the next year or more.

it cratered back around 1992 while the general market was soaring

after the crash of 1987 the next downturn was early 1991 right before the war started. then it was up up and away, except for Citi. right after that the mexican peso thing hit along with a bunch of other latin american loans. and a few years later it was the asian flu

 

[AltaRed]

I posted the breaking news about Bears Stearns being bought by JP Morgan for $2/share on the bank stocks thread. I suspect another investment bank or two may be next to fall, and maybe even Citi. The credit mess is a lot worse than the financial industry and gov't wants us all to think.

 

[al_bundy]

the chart is pretty bad

looked like it was making a double bottom, but late last week it seems to have bounced off the 2002 lows and is now heading back down. few more days and we will see a confirmation of the next trend

 

[haha]

the chart is pretty bad

looked like it was making a double bottom, but late last week it seems to have bounced off the 2002 lows and is now heading back down. few more days and we will see a confirmation of the next trend

Or not.

Ha

 

[chinaco]

Massive Fraud.

Investors are concerned.