Story here. Just-installed Citigroup CEO Vikram Pandit completely changes course and decides to consolidate $49 billion in SIV assets onto their balance sheet. This effectively ends the global uncertainty around SIVs. It also ends the need for the M-LEC ("SuperSIV") plan championed by SecTreas Paulson to deal with the problem. Paulson is going to get a major black eye from this, which is too bad considering his trip to China this week produced nothing but photo-ops. This is big news. Comments enabled.
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Wow. Major About-Face by Citigroup, Damage to Paulson, Comments Enabled
By blackhedd
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Wow. Major About-Face by Citigroup, Damage to Paulson, Comments Enabled
Given that what we're seeing now is
by mbecker908
just the tip of the iceberg, I wonder what's going to happen when the primes and options start to go south...
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CongressCritter™: Never have so few felt like they were owed so much by so many for so little.
...Citigroup and others will not need to go selling massive amounts of mortgage-backed assets at fire-sale prices. That in turn means there won't be a massive downward mark-to-market of everyone else's MBS portfolios.
That in turn means there's much less chance of a global financial meltdown.
They probably got a good look at what was coming down from the government and decided it was better to get ahead of it.
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"Those who expect to reap the blessings of freedom must, like men, undergo the fatigue of supporting it."
-Thomas Paine: The American Crisis, No. 4, 1777