Is That Great Citi Beginning the Plunge?
Jan 13, 2009
Here is today's AOL news about Citibank, which I believe is the heart of financial Babylon and is the most important corporation representing Mystery Babylon. The headline reads, "Is Citi beginning its final plunge?"
Part of the article reads:
"The question now is whether Citi will be the biggest of the financial catastrophes . . .
The risk on Citi's balance sheet is literally incalculable. It is only possible to imagine how much financial firepower is targeted at wiping out its slim capital. At the end of September, Citi had only $126 billion in shareholders' equity arrayed against enormous risks -- including $37 trillion in derivatives and $1.2 trillion in off balance sheet -- special purpose entities (remember Enron?)."
Last September, the collapse of Lehman Brothers marked the latest beginning of the banking collapse. The case of Citibank is much more serious. Expect them to use the last half of the $700 billion bailout fund for Citibank. Even that will only be a drop in the bucket, because Citibank has $37 TRILLION in derivatives. So says the article above.
Let's see. . . The fund has $350 billion left. That's less than one percent of what Citibank actually needs to cover their worthless derivatives. Parachute, anyone?