CapNgain

Citigroup's Decline - Not a Good Sign for the Market

You'd probably be right if it wasn't for the CDS contracts. Would nationalization trigger a default provision, causing tons of other zombie banks to pay out cash they may not have? I'm no CDS expert, but I wonder if it isn't this complex web of derivatives forcing the US to follow the Japanese blunder of supporting zombie banks at the expense of a decade or so of economic growth - simply to avoid further destabilization of other internationl banks?


On Mar 01 12:28 PM Ricard wrote:

> If C were to be nationalized, it may end up being a plus. Given
> its current state and the media attention it is receiving, no financier
> of high repute would ever want to work in this firm. It, and others
> like it, needs to be dissolved, or sold in parts to the highest bidder.
> Only then would our financial system begin a recovery.
>