stretcho44

Stress Tests Show Citi, BofA Need More Money

Converting Preferred to common is simply moving TIER 1 Capital to TCE. The benefit is a reduction in dividend payments on preferred shares and that is the real practical extent of this benefit.

The Friedman Billings Ramsey estimates were based on more extreme estimates of unemployment than the Treasury used that may or may not occur.

Citigroup: The End Draws Near

Naked shorting has been classified as "securities fraud" and stopped as of Oct. 17th. The options market maker exemption was closed which is why option premiums have been so high since mid-Oct. and VIX at record levels. It is not "fear" so much as the extra cost the options market makers have to recover when locating and paying the fees for borrowing shares to short.

The problem is the lack of an UPTICK rule allows massive, concentrated short selling that cascades when long sellers have to sell too. It might not be an "uptick rule" but there really needs to be some mechanism to throttle the short selling rate.


On Nov 22 12:02 PM Emerald wrote:

> Financially, Citi can survive. Short sellers are on the rampage and
> naked short sellers should be put in jail! Paulson has chosen to
> leave his job early and should be fired immediately for incompetence.
> Bush just left the country in a crisis. Reinstate the uptick rule
> and provide Citi a bridge loan. Otherwise, Citi's failure will show
> us what the "new" great deprssion will look like when the government
> institutes a national bank holiday through the end of January 2009.

Citigroup: The End Draws Near

Naked shorting has been classified as "securities fraud" and stopped as of Oct. 17th. The options market maker exemption was closed which is why option premiums have been so high since mid-Oct. and VIX at record levels. It is not "fear" so much as the extra cost the options market makers have to recover when locating and paying the fees for borrowing shares to short.

The problem is the lack of an UPTICK rule allows massive, concentrated short selling that cascades when long sellers have to sell too. It might not be an "uptick rule" but there really needs to be some mechanism to throttle the short selling rate.


On Nov 22 12:02 PM Emerald wrote:

> Financially, Citi can survive. Short sellers are on the rampage and
> naked short sellers should be put in jail! Paulson has chosen to
> leave his job early and should be fired immediately for incompetence.
> Bush just left the country in a crisis. Reinstate the uptick rule
> and provide Citi a bridge loan. Otherwise, Citi's failure will show
> us what the "new" great deprssion will look like when the government
> institutes a national bank holiday through the end of January 2009.