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
http://www.BetterBizBooks.com

Banking Bubble and More Room to DROP?

More thoughts that Citigroup needs to raise more $$$ from the government.

Dan Ross

http://www.BetterBizBooks.com

S&P 500 and the Bank Stocks

If we look at Bank of America (BAC) vs. JP Morgan Chase (JPM) and the S&P 500 JPM is clearly leading in performance over the last 6 months. Below I show some YTD comparisons with Citigroup. Citigroup is the worst performing stock in that respect.

So my question here is "Why is JPM outperforming BAC so much, ESPECIALLY in the last few weeks. Their stock is only off 15% but BAC is off nearly 25%. Is the market saying something?" Why does the analyst at Institutional Risk Analytics think JPM and Citigroup need to go back to the Feds and not BAC? The charts/market seem to indicate a different scenario.



http://finance.yahoo.com/echarts?s=BAC#chart1:symbol=bac;range=ytd;compare=jpm+c+^gspc;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined

Dan Ross
http://www.BetterBizBooks.com

Citigroup & JP Morgan Need to Raise MORE $$$??

So I have posted earlier on my blog re: Citigroup and my thoughts that they were in dire straights. The reason that The government gave four banks $25 billion was so that no one would shoot Citigroup after they were the only ones getting $$$. They would stand out from everyone else.

Now this guy from Institutional Risk Analytics is saying JPM will need more $$$?

Both $$$ mentioned are very scary. Guess I'll keep on building cash for awhile! My Jan-09 target for cash building is now moving to March-09.

Dan Ross
http://www.betterbizbooks.com/