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• With Fannie falling, all eyes on Paulson

  Posted Aug 08 2008, 08:34 AM by Todd Harrison
  Filed under: Citigroup, Bank of America, subprime, stocks, Wachovia, Credit Crisis, todd harrison

  This morning, Fannie Mae joined its smaller cousin Freddie Mac in announcing losses that exceeded Wall Street's already dour expectations.

  The company lost $2.3 billion in the second quarter and plans to slash its dividend to a paltry $0.05 per share, down from $0.25, according to Bloomberg.

  All eyes now turn to Paulson, who just weeks ago asked for -- and received -- a blank check from Congress to support the beleaguered government sponsored enterprises, should the need arise. He had hoped the mere existence of the backstop would calm Investors' nerves such that he wouldn't need to step in.   Read More...

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• Is there a case for buying Citigroup?

  Posted May 12 2008, 10:09 PM by Matt Koppenheffer
  Filed under: CAPS, Citigroup, Credit Crisis
  Rating:

  If Citigroup were a Hollywood actor, right now we'd be seeing pictures of a rumpled star donning sunglasses to cover up bloodshot eyes, and assuring the press that he made some mistakes, but that his troubles are behind him. Some press would decry a waste of talent and a bad example for the kids, while others would say that they feel sorry for him and hope he gets the help he needs.
  
  Citigroup the bank isn't far from that. It had the global reach, the brand, and supposedly the talent. Now its new CEO is trying to pick up the pieces and the company is finding itself the butt of jokes. Oppenheimer analyst Meredith Whitney thinks there's little hope for a turnaround and quipped that "even Stephen Hawking could not pull this off" (kudos to Meredith for the very quotable moment). Douglas McIntyre at 24/7 Wall St. thinks that a pessimist case puts the stock at $10 by year end.   Read More...

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• Is Citigroup setting up to FAIL ?

  Posted May 12 2008, 10:27 AM by Andrew Horowitz
  Filed under: Citigroup, Credit Crisis, Andrew Horowitz
  Rating:
  The saga for Citigroup continues and rest assured that it is not going to subside anytime in the near future. In an effort to bring in capital, it is now planning hoping to sell its Japanese consumer finance unit. The move is intended to plug another hole in Citigroup's very leaky dam. In doing this, there are two results that Citigroup is likely trying to achieve:

  1. Keeping the parent alive by selling off the child, at least for the time being;
  2. Stopping any drag from the Japanese division which is reported to have over $400 billion of assets, approximately 20% of the total value of Citigroup's assets.
     

  The problem is that the valuing of these assets has become difficult as it is now a moving target since many of the traditional metrics have been tossed out during this historic market condition. Knowing that, it is interesting that Citigroup would  consider selling at a time when the price could be at its lowest.   Read More...

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