User 280726

Five Reasons Citi's Worth the Long Risk

The author states the assumption, backed by statements from the government and Fed Chairman Benanke, that Citi will NOT be nationalized. Even the Democrats are smart enought to know that full nationalization would be a disaster for the US economy.

The problem is to a large extent an accounting problem as certain assets, even performing assets, are being marked or valued at ridiculous prices as in many cases there is no trading and no applicable "market value". The problem for long term investors is the "what if " scenario of those undervalued assets being hived off into some vehicle that will prevent Citi shareholders from participating in the inevitable upside.