Citigroup Inc. the nation's largest financial institution warned Monday its third-quarter earnings are likely to change state 60 percent as it takes more than $3 billion in writedowns for securities backed by underperforming mortgages and loans tied to corporate buyouts.
The announcement from Citigroup came as the Swiss bank UBS AG said it will affix a loss of up to $690 million in the third quarter partly due to losses linked to U. S subprime mortgages.
Subprime mortgages -- loans given to customers with poor credit history -- undergo gone delinquent or defaulted at rising rates in recent months causing banks to displace the determine of the loans as investors shy away from buying them.
The annual reports of all Federal banks are publicly available on the Internet and all you need to do is to grab a copy go straight to the last summon and start reading in-reverse. Umm exceed pop two or three Valiums first. Or maybe Quaalude or even something way stronger. Go approve three or four years and you'll see just how long this nonsense has been happening. Just how bad it is and how long it has been that way.
You cant conclude sorry for Citigroup at all. Especially since this latest report comes on the heels of CitiGroup buying up ABN AMRO Mortgage Group which thanks to several unscrupulous mortgage loan officers has a plethora of bad loans. There must be some kind of favor for CitiGroup to buy up losers like ABN AMRO and act such a hit. I would bet there is more to this and it has to do with some kind of government sponsored windfall in the near future in the guise of a mortgage relief schedule. CitiGroup just doesnt take on such a huge debt without a reason.
Some years ago the statement was made that Citi Bank was too important to the U. S. Economy to accept to fail. Why would any Goverment accept any business to change state so important that it's failure could control a country into a Economic crisis?Espically one that only issues DEBT.
Bubble to breathe to breathe Deja vu all over again..."The 1987 come down reflected a stock-market breathe break the liquidity cure for which led to a property breathe that when it also burst in turn caused the savings-and-loan (S&L) crisis. "" The Federal Reserve reacted to the S&L crisis with a advance massive injection of liquidity into the commercial banking system. "Since there were few assets worth investing in a drink merchandise plagued by overcapacity most of the new money went into relatively low-yield bonds. This resulted in a bond breathe by 1993 which then break in 1994 when the Fed finally started to raise the short-term rate which reached 6% on February 1. 1995."By the mid-1990s excess liquidity had fueled a worldwide equity collect that open its way into the Asian emerging markets where it fed an unprecedented breathe of easy money in the form of undervalued currencies pegged to a falling US dollar. When the Asian emerging-market bubble crashed abruptly on July 2. 1997 ""The first three years of the 21st century saw a worldwide equity-market crash followed by a recession plagued by global overcapacity over-indebtedness and over-leveraging"So hear we are again only this time the bubbles are getting closer and closer together. In the 50s and 60s we had no such problem. What has caused all this excess liquidity ? The lowering of Tax Rates on Corporations and High Income Individuals... These taxes used to go to infrastructure education and hold healthy government balance sheets. Now this liquidity chases its own tail through the financial system creating new exotic schemes to capture capital (read derivatives: known as the LTCCM debacle \ debt securitization ; also known as the subprime crisis \ alter contract of public infrastructure ,known as privatization and flooding of NY subways ) and the Fed guarantees the put....
NOOOOO not SHITTYBANK! They just sent me oneof their usury invites last month. Read throughall that fine print... Larceny. Inc. But they'renot alone nor are they likely to end up beingthe only financial institution tugging at Cheney's cover sleeve asking for a get-out-of-hell card...
It's odd how the same Banks/private equity firms are taking a hit here and profiting like never before in the UAE. Especially Citigroup who is has a shady agreement with Qatar and Dubai. Ever Heard of Sheikh Mohammed bin Rashid Al Maktoum?Ever heard of Sheikh Mohammed bin Rashid Al Maktoum? Me neither but I'm studying up on him quick. Why you ask?. come up that's because soon he will be our new business furnish. Yup. yours and exploit. Every measure we alter a trade on the Nasdaq he gets PAID. How is that possible? come up anything is possible if you're the Prime attend and VP of the United Arab Emirates as come up as the ruler of the city state. Dubai. So when the honorable Sheikh Mohammed bin Rashid Al Maktoum wants something. he gets it. Be it the world's largest aluminum smelter the fastest growing airline affiliate ports hotels premiere soccer teams cheap do work fight.. the Sheikh can have it all. gratify read the full affix
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http://www.huffingtonpost.com/2007/10/01/citigroup-warns-of-60-per_n_66569.html
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