Citibank can you believe this stuff?

[dumpster56]

FT.com / Companies / Financial services - Citi looks to secure further $14bn in new capital

Amazing just amazing. What kind of economic base do we have here in the states anymore?

The markets are just smoke and mirrors. Dow headed to under 9K sooner than later.

[barbarus]

Careful NEWGUY.
Someone here will soon accuse you of wearing a "tinfoil hat".

[Retire Soon]

This dire situation really makes me wonder just exactly how much common sense and intelligence the CEO's and management possess that run America's largest financial institutions. Obviously, they proved themselves to be suckers for what was probably one of the largest bubbles in world history. You can bet that we will all suffer because of their greed and ineptitude for many years to come. By the way, I am writing this post on my laptop from a bomb shelter left over from the 60's and yes I am proudly wearing my tinfoil hat.

[Notmuchlonger]

You guys worry too much.

[NotSoonEnough]

Quote:

Originally Posted by newguy888 Dow headed to under 9K sooner than later.

Yes, yikes, ugh, bend over, cover head, the end is near, game over ...

Game over - Wikipedia

[Trek]

I'm going to make my kids learn Chinese.

[Notmuchlonger]

I remember when the Japanese were buying up alot of the US. What a big deal that was going to be. I seen how that story turned out.

[OAG]

The "selling" of America continues - and at bargain prices. When will the Chinese characters start appearing on the dollar?

[dumpster56]

Quote:

Originally Posted by Trek I'm going to make my kids learn Chinese.

A good idea.

[dumpster56]

Quote:

Originally Posted by barbarus Careful NEWGUY. Someone here will soon accuse you of wearing a "tinfoil hat".

Tinfoil hat? I have the antenna on both sides. Ask Nords!

[saluki9]

1. I don't see what Citibank needing a capital infusion has to do with the Dow hitting 9,000

2. If all of our baby boomer's expect to retire we as a country are going to have to sell a lot more of our assets to China, Singapore, Kuwait, etc.

3. Did those in charge of Citi make some bad choices, yes. However, people seem to forget the JP Morgan Chase and BOA which are also banking giants avoided much of this mayhem.

[Retire Soon]

Quote:

Originally Posted by saluki9 1. I don't see what Citibank needing a capital infusion has to do with the Dow hitting 9,000 2. If all of our baby boomer's expect to retire we as a country are going to have to sell a lot more of our assets to China, Singapore, Kuwait, etc. 3. Did those in charge of Citi make some bad choices, yes. However, people seem to forget the JP Morgan Chase and BOA which are also banking giants avoided much of this mayhem.

J.P. Morgan Chase is now holding talks with other large financial institutions, one being Washington Mutual about a possible consolidation in hopes of strengthening the credit industry.

washingtonpost.com

[saluki9]

Quote:

Originally Posted by Retire Soon J.P. Morgan Chase is now holding talks with other large financial institutions, one being Washington Mutual about a possible consolidation in hopes of strengthening the credit industry. washingtonpost.com - nation, world, technology and Washington area news and headlines

Strengthening the credit industry? Wow, they have a wonderful PR dept don't they?

Translation - we know it's hard to believe now, but some time in the future people will be taking new mortgages and we'd like to pick up the second largest mortgage originator in the US for a fire sale price.

[FIRE'd@51]

We were hearing a lot of this kind of stuff about Japan in the late 80's, and it never quite worked out the way the doomsayers were predicting. I'd be more worried if foreigners didn't want to invest in America.

[Babeebloos]

I see it as a 'Godsend'....a rather brilliant idea! Let some of the countries who hold our American dollars reinvest it into OUR economy. How else are they going to spend the trillions of dollars in their possession?
I can see far worse scenarios on what they can do with the big bucks they hold. Remember they are only investors and not individual owners.
Why not let them help us out?

[audreyh1]

Quote:

Originally Posted by Retire Soon Obviously, they proved themselves to be suckers for what was probably one of the largest bubbles in world history.

I don't think you can call them suckers, since they were their own victim.

They CREATED the koolaid.

And then they DRANK it!

Just incredibly stupid.........

Audrey

[FIRE'd@51]

Quote:

Originally Posted by audreyh1 I don't think you can call them suckers, since they were their own victim. They CREATED the koolaid. And then they DRANK it! Just incredibly stupid.........

I'm not so sure. From what I've read about the severance packages (e.g. Oneal and Prince), that Kool-Aid tasted pretty good!

[brewer12345]

Jeeze, you guys don't grasp even elementary "three envelope principles" of management transitions. You know the old joke about when a new Soviet premier comes into office? He is given three envelopes and told to open one each time he screws up. Time passes and the new premier screws up. He opens the first envelope and inside is a note that says, "blame it on the last guy." So he does and things blow over. A year goes by and the premier screws up again, so he opens the second envelope. Inside is a note that says, "apologize and promise it will never happen again." He does, and things blow over. Finally the premier screws up a third time and opens the last envelope. Inside is a note that says, "prepare three envelopes..."

Pandit at Citi is doing exavtly what a new CEO does in these circumstances. Take the biggest write off you can get away with, blame it on the last guy, and make sureyou get a whole bunch of options struck at a low price in the ensuing panic. No flies on old Vikram.

[saluki9]

Quote:

Originally Posted by brewer12345 Pandit at Citi is doing exavtly what a new CEO does in these circumstances. Take the biggest write off you can get away with, blame it on the last guy, and make sureyou get a whole bunch of options struck at a low price in the ensuing panic. No flies on old Vikram.

Let's not forget who we're dealing with. Vikram Pandit (for those who don't know) used to be head of investment banking at Morgan Stanley. He left during the coup there. Knowing that he would be a hot management property, the first thing he did was start a hedge fund.

So, in order for anybody to get him to their firm, they would have to first buy out his ownership in the hedge fund. Citi bit for it and paid his a TON just to get him on board.

Job well done I say.

[mountaintosea]

Brewer you always set the record straight!