I am afraid that the answer is yes.
The financial supermarket is gone, and so is Citibank.
As this article suggests, the government is forcing the sale of Smith Barney and the split of Citibank. They want their money back; they aren't giving more. They are a bondholder and can direct this. It is very, very bad news for shareholders, but this is the same thing that happened with AIG.
Nortel, too, was too big to fail and it failed this morning. Citibank, I am afraid, is next.
This is bad.
This explains why Robert Rubin quit.
At least the Sheik is going to get it too.
Comments
Sam Cass
January 15, 2009
I posted an article with much the same thought. I think as it shrinks it no longer becomes too big to fail.
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