driftwood2

Citigroup: Bowing to the Inevitable

"Moody's sees no ratings impact of the deal on either Citi or Morgan Stanley. Neither does Fitch. Nor Standard & Poor’s." More evidence of the utter irrellavence of these ratings companies. Are these guys good for anything? The entire ratings industry needs to be changed so that only the consumers of their information should be the provider of funds.

S&P 500 Financial Sector Market Cap Continues to Sink

The size of these losses, especially for companies like C, BAC, MS, GC, and etc is a rough indicator of how much money will ultimately be needed to bail them out. Some optimistic individuals are of the opinion that the bailout funds already provided by the government will be enough to fix our financial system. If that were the case, why would Citi, who received a mere $45B from the government, have lost $246B in market cap? If Citi had only lost on the order by $45B, wouldn't their market cap have fallen a similar amount? The truth is, Citi alone will probably require hundreds of billions of taxpayer dollars to be made solvent. Tarp is only the beginning.