Sunday, November 23, 2008

Government to the rescue with Citigroup Sunday Night?

This will be interesting news to watch tomorrow.

Everyone knew Citigroup was in trouble. Now it looks like the government is stepping in to do something.

What is VERY unique about Citigroup (NYSE: C) is that they are 60%-70% international revenue vs. JPM at roughly 30% or so and Bank of America at 5%-10% max. This basically means that there is more COUNTERPARTY risk associated with Citigroup going under than other institutions since they play a much larger role in foreign capital markets. If Citigroup goes under than the global financial markets could really unravel quickly....That is the concern that the government is trying to address before the markets open tomorrow.

Dan Ross

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