Redman

Central Banks Are Destroying Traditional Risk Spread Methodologies

A very good article. Despite the so-called "dangers' of this new methodology..you gotta do what you gotta do! There would be no reason for this if the banks had kept their collective eye on the ball in the first place! These above 'normal' rates companies are paying now are a direct result of a pricing mechanism that didn't/doesn't work in any environment. The market (bonds, stocks, Libor, etc.) are trying, albeit lamely, to re-price what they think is the current value for instruments that they and the banks invented and possibly never really understood! Who ever thought that home values would collapse? Certainly not those who invented and marketed these products! Hence the neurosis surrounding the current atmosphere. If we are to survive this crisis then the steps being taken ( and remember, these are short-term steps) will have to be accepted as they are until the de-leveraging process works itself out.

Vikram Pandit Rejects CitiSachs?

Maybe Citi had it's eye on Wachovia at the time. They are also smiting from their complete structural breakdown and "pride" surely had it's place in the scheme of things. When you get right down to it...Citi is right back where they started under John Reed..albeit with a slightly higher stock price.

Is It Time to Put Citigroup Out of Its Misery?

This is an interesting concept..nay the fact that it would need cross-border regulatory approval...not to mention approval from Citi's Mid-east investors as well.
I remember in the 90's when Citi was trading below $10...and was referred to as "sh-itty bank". Then came Weill & Co. and turned it into the future mess that it became!
On another note...I also find it amazing that despite all the problems the brokers and banks have...they can still find it in their money-hungry hearts to downgrade (rate) their peers. The marketplace has entered a stage that I haven't seen in almost 30 years in the biz...complete 'mundo bizarro'..I mean look at the extremes...if this isn't the proverbial "accident waiting to happen"..then I'm not quite sure what truly will occur.