Citibank to use a tourniquet to save its own life
Jan 17, 2009
Last week Citigroup split off Smith Barney, and now they have announced that Citigroup itself will split in two. This comes after Citigroup lost another $8.3 billion in the last quarter. They are bleeding money profusely, and the government bailout money is only a band-aid. So now Citigroup is applying a tourniquet.
That meams Citigroup is being split into three parts. Rev. 16:18 speaks of a great (economic) earthquake, and as a result of this quake, verse 19 says,
"And the great Citi was split into three parts, and the cities of the nations fell. And Babylon the great was remembered before God, to give her the cup of the wine of His fierce wrath."
Their tourniquet is intended to isolate one part of their body in preparation for its amputation.
They intend to create a healthy Citi bank and a toxic City bank. They say they will put their good assets into the one, and all of their bad assets into the other. Obviously, Obviously, they are either preparing to sell it to the taxpayers or to let the toxic bank go bankrupt, so that they won't have to pay off all those toxic derivatives worth many trillions of dollars.
This will be done to save Citibank, but it means that all of its creditors, who hold hundreds of trillions of dollars' worth of those toxic derivatives, will go bankrupt, because those same toxic derivatives are listed as "assets" in the portfolios of other companies. Those companies have used those "assets" to borrow money and to invest. When they are forced to write off such large sums of debt-money, the effect will be catastrophic.
If Citibank thinks it can survive by doing this, they are mistaken. They will be bankrupting the very people that have been doing business with them. Citi will lose the confidence of the whole world, and they will then collapse under the weight of their own stupidity.
But then, what choice do they have at this point? They killed themselves by their business practices in the past decade. Now it is coming time for God to foreclose on them.
NOTE ALSO: The article above informs us that Robert Rubin is leaving Citibank in order to join the Obama cabinet.
"The banking giant also said it expected more departures from its embattled board, which is losing former Treasury Secretary Robert Rubin as a director later this year."
Well, that should help. I feel so much better now. What he did for Citigroup, he can now do for America. I suspect that Robert Rubin has been dispatched to "government service" in order to push the government into buying the toxic bank.
Dr. Stephen Jones