Worser And Worser
Not only are they holding more crap than they've admitted to, they don't have enough cash for a dividend this quarter. Plus they've already assumed an additional $58 billion to cover their asses on a bunch of other funds. Hell, if this keeps up, we'll be able to buy these chumps. Bloomberg (12.27.07):
"Citigroup is trying to preserve capital and may be forced to write off $18.7 billion in collateralized debt obligations, up from its Nov. 4 estimate of as much as $11 billion, [Goldman Sach's analyst William] Tanona wrote in the [December 26th] report." Citigroup May Cut Dividend by 40%, Goldman SachsThese guys are in big trouble. The report continues. "'Given the magnitude of the writedowns we assume, and Citi's remaining exposure, we believe the firm has a serious need to preserve or raise additional capital.'" So the $7.5 billion from Abu Dhabi won't be enough? Bill's not overly optimistic about our other Jolly Bankers, by any stretch. "Writedowns at the biggest banks are still likely to be 'significantly larger than investors are anticipating,' Tanona wrote, doubling his estimates for charges at New York-based JPMorgan Chase & Co. [$3.4 billion instead of $1.7 billion] and Merrill Lynch & Co. [$11.5 billion instead of $6 billion]."
Labels: jolly bankers