Comments (18)

Nov 19, 2008

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?

Nov 19, 2008

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

Nov 19, 2008

Though Citi won't "go" anywhere (it won't be broken up completely, but as everyone knows it now looks like some chunks will be sold off soon), that stock price is gonna' come down hard.

The funny thing is when I had my final round there, one of the questions I got (three weeks ago) was "what would you pay for Citi?".

The jerk made a big flippin' deal when I said 8-9 dollars (it was at 14 then), even after I defended myself fairly well. Look who's talkin' now! Enjoy those stock options, ya jerk!

Kidding, but still. Feels kinda' nice. :) The irony will be complete if I get staffed on a deal to sell off some of those chunks at the boutique I took a place at (FIG boutique).

Good luck to all those who took offers from them...really hope things work out ok. Tough times for everybody.

Nov 19, 2008

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
Nov 19, 2008

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

Learn More

7,548 questions across 469 investment banks. The WSO Investment Banking Interview Prep Course has everything you'll ever need to start your career on Wall Street. Technical, Behavioral and Networking Courses + 2 Bonus Modules. Learn more.

Nov 19, 2008

Would be miserable...

Nov 20, 2008

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.

Nov 20, 2008

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.

Nov 20, 2008

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.

"Oh the ladies ever tell you that you look like a fucking optical illusion" - Frank Slaughtery 25th Hour.

Nov 20, 2008

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

Nov 20, 2008

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

Hoping for the best.

Nov 20, 2008

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.

Nov 20, 2008

http://www.elitetrader.com/vb/showthread.php?s=c1b...
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.

Nov 20, 2008

they went below $5 today for a while

Nov 20, 2008

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 :-)

Nov 19, 2008

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

Nov 20, 2008

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.

Nov 20, 2008
Comment