Citi trading below $7. Insolvency/bankruptcy in the future?

I am very scared, that's all I know. They just gave me a job. I don't know what to think anymore. Too big for the govt to let fail but not too big to sell of parts of their business?

just think about it..... It's not a rocket science, with the way that the market has been going since Nov 5th the stock price was around 12.80 now it's around 6.40 so with the current environment it can take ta up to two weeks maybe more or less for Citi to go under or get bailed out by uncle Sam, This can happen if we don't see any positive news coming out soon especially for the financials, let's hope for the best

I think they get split up with some major government intervention between JPM, WFC and BAC.

Not sure enough or ballsy enough to short it/buy puts though...

• Capt K

So the consensus among people in this thread is that Citi is fucked?

Would be miserable...

Lets all hope for the best. I would hope that the government would step in to save Citi if it were to continue to dive and take a turn for the worst.

What are the chances of a HSBC & Citi merger? Would it make any sense? HSBC has great deposit inflows and Citi has a great investment bank with a good depository base. I also don't see a clash in culture. If it did happen, although it seems most unlikely, you'd have a banking behemoth with about 5 trillion dollars in assets.

can someone please give a brief summary of whats going on with Citi? Same thing as Lehman? Liquidity concerns? They had equity of 126bn as of september 30th just trying to get an idea. Know they are planning to buy back 17bn in off balance sheet assets but im not sure what this does to their equity position. If Citi goes DOW 6000.

I'd like to see a summary of whats going on with Citi as well!

If Citi goes down, I think we're all majorly fucked. Not that Citi is that bloody great, but damn...

Hoping for the best.

Looks a lot like the end of the summer all over again and it's not just Citi bleeding like mad right now. The money is just oozing out of the stock of all the banks. I can't imagine what would happen if any of them canceled their dividend in this environment.

Interestingly though, if you look at a company like JPM, it's currently trading at ~11x forward earnings which isn't that low of a P/E for a bank or for JPM historically.

http://www.elitetrader.com/vb/showthread.php?s=c1bde97079b7d4f6f5eda464…

Jim called Citi a buy at $5 back in December so, if Jim Rogers is right and it looks like he is right, can't see Citi going below $5 unless they are going under.

they went below $5 today for a while

Let's see... I can think of one possible upside if C goes bankrupt/insolvent... perhaps it would affect my six figure graduate student loan debt which is entirely held by Citibank. Perhaps it would mean that I owe $0? Yay!!

Wishful thinking... wishful thinking. Sigh.

Well, at least I can daydream :-)

The government will have to save Citi or we are in for some shit

by any normal measure - the risk parameters that are being applied even now do not take into account the inevitable dramatic increase in default rates, that will lead to a further decline in lending, leading to further increase in default rates, rinse & repeat.

The only way to break the circuit is with further government intervention - and Citi will not be allowed to "fail" - but it will not be without pain for the shareholders.

The capital increases thus far have been merely sticking plasters when seen in the context of trillion dollar balance sheets.