Citi’s Slow Motion Crash

The shuffling of deck chairs in the form of stock with Uncle Sam and Citigroup yesterday changes nothing about the viability of the crippled financial institution. It makes the bank’s tangible common equity ratio better at the expense of Tier-1 capital. It really changes nothing on the bank’s balance sheet, except to change the playing […]

Vikram Is A Little Pregnant

Treasury Secretary Tim Geithner is walking a tight rope, where he is bound to fall. Geithner is feverously working to keep Citigroup’s ATMs working. Treasury knows by now that Citi cannot survive the “stress test.” Not the worst-case scenario test that Fed chief Ben Bernanke told Congress yesterday but the simple balance sheet accounting of […]

Santelli’s Soliloquy

By MICHAEL GRAY CNBC’s Rick Santelli’s rant on the mortgage-rescue plan had many insiders labeling it just a populist’s screed. His informal poll of floor traders, which could be the last bastion of capitalism –– gave voice to the first peels of insurrection. Why bailout the neighbor who has lived on the cheap for the […]

Geithner’s Only Plan: Bank Nationalization

Many of the nation’s largest banks are too sick to cure and the only way to clean up their balance sheets, saddled with as much as $5.7 trillion in toxic assets, is through nationalization, a growing number of economists said. This drastic step, so far being resisted by the Obama administration, would wipe out shareholders […]

Geithner Blinked

Treasury Secretary Tim Geithner pledged yesterday for greater transparency in the government’s bank rescue plan and yet gave none. Geithner laid out broad initiatives to bring private investors into the fray of buying beleaguered bank assets, but could not be more specific as to what it would look like. Why Geithner even bothered to take […]

Saving Private Equity

By MICHAEL GRAY Treasury Secretary Tim Geithner is said to be looking to the fox to help rebuild the hen house. Treasury officials are said to be asking private-equity  and hedge fund money to step in and create trading ranges for some assets, which may be the true shock and awe of the plan that […]