Alecto

Citigroup on the Brink, Despite Government Rescue

This is pathetic journalism.

"If we split the $953 billion in half and conservatively assume this portion is "troubled"...."

Can you give any qualification for how that ridiculous assumption is conservative? Or how you can assume that the assets that Merrill sold are in any way similar to the assets held in Citi's OBS vehicles?

The whole point about the world of structured assets and the problems with valuing them is that they are all unique and illiquid.

Can anyone explain why the banks aren't all forced to open their books to public scrutiny so that the market can assess the state of their assets for itself rather than relying on accountants and traders to perform highly subjective valuations behind closed doors?