Citi on the Rocks: What's Left to Do? (Roundup)

From Seeking Alpha's home page, June 10:

What's Left for Citi to Do?

Making Failure an Option (WSJ) • Citi in Defensive Mode with Poison Pill (FT)

Certain Banks Are Still Broke by James Bibbings

The Citigroup Anomaly Lives On by Donald Marron

Underestimating Citigroup by Daniel Harrison

Escape from TARP: Reason to Celebrate? by Ron Rowland

Revisiting the MBS Debate by Dear John Thain

More on: Citigroup

Comments

[freefall51:]

Cetin , you cannot hide!

Jun 13 10:29 PM

[conceptwizard:]

They are betting that the worlds central banks, China, Russia. Saudi Arabia, Brasil and India will keep on financing their debt. They Won't.
Challenging America will be the prime focus of extended meetings in Yekaterinburg, Russia (formerly Sverdlovsk) today and tomorrow (June 15-16) for Chinese President Hu Jintao, Russian President Dmitry Medvedev and other top officials of the six-nation Shanghai Cooperation Organization (SCO). The alliance is comprised of Russia, China, Kazakhstan, Tajikistan, Kyrghyzstan and Uzbekistan, with observer status for Iran, India, Pakistan and Mongolia. It will be joined on Tuesday by Brazil for trade discussions among the BRIC nations (Brazil, Russia, India and China).

The attendees have assured American diplomats that dismantling the US financial and military empire is not their aim. They simply want to discuss mutual aid – but in a way that has no role for the United States, NATO or the US dollar as a vehicle for trade.

"The artificially maintained unipolar system,” Mr. Medvedev spelled out, is based on “one big centre of consumption, financed by a growing deficit, and thus growing debts, one formerly strong reserve currency, and one dominant system of assessing assets and risks.” At the root of the global financial crisis, he concluded, is that the United States makes too little and spends too much.

It just a matter of a short time now.

Jun 14 07:54 PM

[Jeff Nielson:]

How about a decent burial?

Jun 14 08:16 PM

[Mark Bern:]

Conceptwizard - good comment. And Citi is right in the middle of it all. Citi may be the weakest link in the US banking chain. I believe they will be forced into bankruptcy as the US economy enters the second dip of its double dip recession (and I think I'm being optimistic by saying we will have only a second dip with the mindset of current leadership). If that happens, we can only imagine what the fallout will be. But we can probably bet on much more debt via another round of stimulus including more aid to states and additional extensions to unemployment insurance.

My greatest fear is that the government will attempt to prop up the likes of Citi and other too big to fail banks again in an attempt to put off the pain. The pain has to come to heal the economy and the sooner we take the medicine the less it will cost our future generations.

Sep 29 02:06 PM