Comments on: Is Citi about to WAMU ? http://www.ritholtz.com/blog/2008/11/is-citi-about-to-wamu/ Macro Perspective on the Capital Markets, Economy, Geopolitics, Technology, and Digital Media Tue, 14 Feb 2012 16:55:10 +0000 hourly 1 http://wordpress.org/?v=3.0.5 By: super_trooper http://www.ritholtz.com/blog/2008/11/is-citi-about-to-wamu/comment-page-1/#comment-127886 super_trooper Fri, 21 Nov 2008 16:43:36 +0000 http://www.ritholtz.com/blog/?p=10272#comment-127886 why would the gov put COMMON EQUIY into banks under TARP II. Just take over the whole company, by force, fight it out in the course later if needed. There should be just 1 single shareholder if the gov puts in money at this point. Screw the previous shareholders. That's the Swedish model and it worked well. The government was very aggressive, took over Nordbanken put the bad debt in a separate holding company and sold Nordbanken (now Nordea) a few years later. Rapid action is needed, now. Paulsen doesn't know what he's facing nor what he's doing. why would the gov put COMMON EQUIY into banks under TARP II. Just take over the whole company, by force, fight it out in the course later if needed. There should be just 1 single shareholder if the gov puts in money at this point. Screw the previous shareholders. That’s the Swedish model and it worked well. The government was very aggressive, took over Nordbanken put the bad debt in a separate holding company and sold Nordbanken (now Nordea) a few years later. Rapid action is needed, now. Paulsen doesn’t know what he’s facing nor what he’s doing.

]]> By: super_trooper http://www.ritholtz.com/blog/2008/11/is-citi-about-to-wamu/comment-page-1/#comment-127879 super_trooper Fri, 21 Nov 2008 16:34:08 +0000 http://www.ritholtz.com/blog/?p=10272#comment-127879 The $25 billion for auto companies will look like small change. Why even bother estimating the fed budget deficit. Heck of a job. The $25 billion for auto companies will look like small change. Why even bother estimating the fed budget deficit. Heck of a job.

]]> By: super_trooper http://www.ritholtz.com/blog/2008/11/is-citi-about-to-wamu/comment-page-1/#comment-127878 super_trooper Fri, 21 Nov 2008 16:32:18 +0000 http://www.ritholtz.com/blog/?p=10272#comment-127878 down another 20%. Citi won't last longer than next week. There'll be frantic activity this weekend. 'll give it until next week. Can anybody afford buying it or will the gov have to step in? down another 20%. Citi won’t last longer than next week. There’ll be frantic activity this weekend. ‘ll give it until next week. Can anybody afford buying it or will the gov have to step in?

]]> By: Chris Whalen http://www.ritholtz.com/blog/2008/11/is-citi-about-to-wamu/comment-page-1/#comment-127876 Chris Whalen Fri, 21 Nov 2008 16:28:40 +0000 http://www.ritholtz.com/blog/?p=10272#comment-127876 Citi won't do a WaMu. After the WaMu resolution, when the parent company debt and equity holders got torched, the central banks called the Treasury and the Fed and basically said WTF are you doing? Thus we had open bank assistance with the Wachovia sale. C could go to zero today or next week. All that means that Uncle must get off his duff and put COMMON EQUIY into banks under TARP II. M. El Arian said it well on CNBC today. Citi as a bank is fine, but as a PUBLIC EQUITY investment, it is toast, crap, muerto, kaput. That is the legacy of fair value accounting, where all complex financial institutions are insolvent. If price=value, then all large banks in the US are insolvent and all public shareholders of these banks are toast. Thanks again to the FASB and Chris Cox for implementing FVA last year. Citi won’t do a WaMu. After the WaMu resolution, when the parent company debt and equity holders got torched, the central banks called the Treasury and the Fed and basically said WTF are you doing? Thus we had open bank assistance with the Wachovia sale.

C could go to zero today or next week. All that means that Uncle must get off his duff and put COMMON EQUIY into banks under TARP II. M. El Arian said it well on CNBC today. Citi as a bank is fine, but as a PUBLIC EQUITY investment, it is toast, crap, muerto, kaput. That is the legacy of fair value accounting, where all complex financial institutions are insolvent.

If price=value, then all large banks in the US are insolvent and all public shareholders of these banks are toast. Thanks again to the FASB and Chris Cox for implementing FVA last year.

]]> By: vdhinaka http://www.ritholtz.com/blog/2008/11/is-citi-about-to-wamu/comment-page-1/#comment-127837 vdhinaka Fri, 21 Nov 2008 15:00:28 +0000 http://www.ritholtz.com/blog/?p=10272#comment-127837 Who is next to WAMU? Citadel? Who is next to WAMU? Citadel?

]]> By: Jim C http://www.ritholtz.com/blog/2008/11/is-citi-about-to-wamu/comment-page-1/#comment-127832 Jim C Fri, 21 Nov 2008 14:37:53 +0000 http://www.ritholtz.com/blog/?p=10272#comment-127832 C0ruscation - that chart is adjusted for the splits...so he is up about 100% in 17 years or so. Not great. however, his dividends have probably totalled over $10/share since then, so still looks like he did well on his $2.50ish stock purchase. C0ruscation – that chart is adjusted for the splits…so he is up about 100% in 17 years or so. Not great. however, his dividends have probably totalled over $10/share since then, so still looks like he did well on his $2.50ish stock purchase.

]]> By: wunsacon http://www.ritholtz.com/blog/2008/11/is-citi-about-to-wamu/comment-page-1/#comment-127825 wunsacon Fri, 21 Nov 2008 14:12:34 +0000 http://www.ritholtz.com/blog/?p=10272#comment-127825 >> folks are right, this site needs a preview function for comments. I'm looking forward to a preview function for my trades. >> folks are right, this site needs a preview function for comments.

I’m looking forward to a preview function for my trades.

]]> By: greenie http://www.ritholtz.com/blog/2008/11/is-citi-about-to-wamu/comment-page-1/#comment-127816 greenie Fri, 21 Nov 2008 13:28:10 +0000 http://www.ritholtz.com/blog/?p=10272#comment-127816 Big surprise that the board is meeting to cut the company up for some sort of fire sale of the assets. I think the FDIC will pull a WAMU on the deposit part of the company...Maybe GS will get their deposit base at a nice discount..better than buying the whole messed up company and their bad paper too.. Big surprise that the board is meeting to cut the company up for some sort of fire sale of the assets. I think the FDIC will pull a WAMU on the deposit part of the company…Maybe GS will get their deposit base at a nice discount..better than buying the whole messed up company and their bad paper too..

]]> By: alent1234 http://www.ritholtz.com/blog/2008/11/is-citi-about-to-wamu/comment-page-1/#comment-127815 alent1234 Fri, 21 Nov 2008 13:27:03 +0000 http://www.ritholtz.com/blog/?p=10272#comment-127815 The good prince sold all his Citi stock back in 2005 or 2006. i saw the interview after he sold it, but can't remember when. i bet he's buying the same shares now he sold a few years ago at a nice discount The good prince sold all his Citi stock back in 2005 or 2006. i saw the interview after he sold it, but can’t remember when. i bet he’s buying the same shares now he sold a few years ago at a nice discount

]]> By: insaneclownposse http://www.ritholtz.com/blog/2008/11/is-citi-about-to-wamu/comment-page-1/#comment-127805 insaneclownposse Fri, 21 Nov 2008 11:22:48 +0000 http://www.ritholtz.com/blog/?p=10272#comment-127805 folks are right, this site needs a preview function for comments. Previous post should read "People have been fearful for the last six months, but unless you bought yesterday, you've had your ass handed to you." my apologies folks are right, this site needs a preview function for comments. Previous post should read “People have been fearful for the last six months, but unless you bought yesterday, you’ve had your ass handed to you.”

my apologies

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