2 years, 12 months ago
How will GM Bondholders CDS payouts affect Citigroup? Will Citigroups TCE be enough?
When GM defaults the creditor sells the bond at face value and the bank pays the lost difference on the Bond to the creditor. Because GM defaulted, the creditor will have to payout billions. How many billions is speculative, at this point.
Will Citigroup become the first nationalize bank?
Can Citigroup raise additional funds by selling more assets?
How are investors reacting to Citigroups long-term strategies?
Will Citigroup become the first nationalize bank?
Can Citigroup raise additional funds by selling more assets?
How are investors reacting to Citigroups long-term strategies?
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M$1 Answer
Nationalization of Citigroup is not in the cards, I don't think:
Speaking to reporters Monday, White House Press Secretary Robert Gibbs said President Obama "believes that a privately held banking system regulated by the government is the best model." (Forbes, Feb, 2009).
But that doesn't mean Obama won't get a stake of Citi, trading money for voting powers or even stock. As of February, the government already owns 7% of Citigroup.
They will keep injecting capital and seeing which banks keep afloat. It's a very slow process.
Speaking to reporters Monday, White House Press Secretary Robert Gibbs said President Obama "believes that a privately held banking system regulated by the government is the best model." (Forbes, Feb, 2009).
But that doesn't mean Obama won't get a stake of Citi, trading money for voting powers or even stock. As of February, the government already owns 7% of Citigroup.
They will keep injecting capital and seeing which banks keep afloat. It's a very slow process.
You can leave an optional "tip" with Mahalo's virtual currency, Mahalo Dollars. If you are asking a difficult question that might require some research, or if you'd like a wide variety of feedback, a higher tip often leads to more answers to your question.
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