Who will fare the WORST in the recent credit debacle and sub-prime mess?

Who will fare the WORST in the recent credit debacle and sub-prime mess?

Bear Stearns
20% (10 votes)
Merrill Lynch
16% (8 votes)
Goldman Sachs
2% (1 vote)
Morgan Stanley
0% (0 votes)
Lehman
4% (2 votes)
Credit Suisse
4% (2 votes)
UBS
18% (9 votes)
Citigroup
30% (15 votes)
Bank of America
6% (3 votes)
Other
0% (0 votes)
Total votes: 50
 

Tough call b/w Bear, Merrill, and Citi. Ultimately, I think Bear is the only one small enough to go broke from this. Although Citi is making the more-recent news, and is writing off huge amounts, the bank is large enough to support the write-offs with other operations. That said, I don't think it's unimaginable that market speculation would weaken Citi's stock price to the point where the company would be a viable takeover target.

 

Uh, yeah, no way in hell Citi will be a takeover target. Not a chance. Might spin something off and have it get swallowed. I'll laugh, though, if it has to write off so much it damages its ability to operate as a commercial bank (i.e. blows its ratings or screws up its capital ratios). Talk about death spiral. I'm all for keeping payouts healthy, but when the chips are down I'd say they should just bite the bullet and kill the dividend.

 

If Citi goes under, I'm moving to Europe, because we're screwed.

"We are lawyers! We sue people! Occasionally, we get aggressive and garnish wages, but WE DO NOT ABDUCT!" -Boston Legal-

"We are lawyers! We sue people! Occasionally, we get aggressive and garnish wages, but WE DO NOT ABDUCT!" -Boston Legal-

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