JasonC

Is Citigroup Failing?

Bear speculation in Citi is brainless and just that. It is no more an indication of underlying anything than $147 oil was an indication that oil was about to run out. Citi has operating cash flow of $45 billion per quarter, positive, in the worst financial environment in our lifetimes. It is simply calling in debt by allowing loans to run off, forcing an epic cash flow in its own favor, and using it to retire debt. It isn't going to go bankrupt doing this. It is going to satisfy creditors and improve liquidity, to any degree anyone wants.

When they decide they are safe enough, they aren't going to need to ask anyone's permission on earth. They can just buy the rest of the common and go private out of 3 month's cash flow, and thumb their noses at the short sellers and CDS speculators all day, every day.