Citigroup has taken more than $40 billion in writedowns since the middle of 2007.
Apparently they indicated in their meeting on Monday with employees that losses will be $4.9 billion in Q3 with losses going up $1 to $2 billion each quarter. That means next June the company could lose up to $10 billion.
Anyone else need a stiff drink after reading that?
Wow. Where was the board during all of this? I mean, these guys lost an INSANE amount of money and no one seems to be losing their shirt except the U.S. taxpayers (for the time being). I sure as heck feel now that Robert Reubin shouldn't be the Treasury Secretary in Barack Obama's Cabinet as the guy has been paid $15 million per year as a board member and investment banker at Citigroup since leaving the Clinton presidency. What was his role in this?
Dan Ross
http://www.BetterBizBooks.com
Showing posts with label Robert Roubin. Show all posts
Showing posts with label Robert Roubin. Show all posts
Wednesday, November 19, 2008
Friday, November 14, 2008
Citigroup (C) & Robert Roubin / Obama
So what is interesting here is this:
1) Roubin was an advisor/banker at Citigroup and Board Member. He is an an economic advisor to Barack Obama and possible Treasury Secretary. He had that role with Bill Clinton. Should a guy that clearly was asleep at the wheel re: risk management and enriched himself the entire time get such a role? I don't think so.....
2) Citigroup is really the reason that the banks got $25 billion each (Citigroup, Wells, JPM, Bank of America) in loans from Paulson via their "closed door" meeting that was highlighted in a 60 minutes video link I posted about a month ago. Ken Lewis of Bank of America is interviewed.
Citigroup is 60%-70% international. If they go under the "counter party" risks (ie. exposure of other worldwide banks/nations) would go THROUGH the roof and take down the entire global financial system.
If you look at their losses they have some of the highest amongst all banks in writedowns associated with mortgages - I am sure they will eventually be passed by Wachovia.
Additionally, look at their exposure to consumer credit. Henry Blodget estimated it at $500 billion in exposure. A 10% writeoff is $50 billion!
Just something to keep an eye on.
Dan Ross
http://www.BetterBizBooks.com
1) Roubin was an advisor/banker at Citigroup and Board Member. He is an an economic advisor to Barack Obama and possible Treasury Secretary. He had that role with Bill Clinton. Should a guy that clearly was asleep at the wheel re: risk management and enriched himself the entire time get such a role? I don't think so.....
2) Citigroup is really the reason that the banks got $25 billion each (Citigroup, Wells, JPM, Bank of America) in loans from Paulson via their "closed door" meeting that was highlighted in a 60 minutes video link I posted about a month ago. Ken Lewis of Bank of America is interviewed.
Citigroup is 60%-70% international. If they go under the "counter party" risks (ie. exposure of other worldwide banks/nations) would go THROUGH the roof and take down the entire global financial system.
If you look at their losses they have some of the highest amongst all banks in writedowns associated with mortgages - I am sure they will eventually be passed by Wachovia.
Additionally, look at their exposure to consumer credit. Henry Blodget estimated it at $500 billion in exposure. A 10% writeoff is $50 billion!
Just something to keep an eye on.
Dan Ross
http://www.BetterBizBooks.com
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