Source : http://ftalphaville.ft.com/ Citigroup, prime mover behind Wall Streetâs master conduit scheme, may be facing trouble, and big declines in earnings, but itâs still lending. The bank has just leoaned about $500m to a structured investment vehicle run by IKB, the German bank that was bailed out in July, it emerged on Monday. Citi has taken a reserve of almost $100m against the loan. Ha, ha, ha....Great ! What a wonderful world we are living in ! You remember IKB ? Just to recall : "German bank IKB, which nearly went bust after subprime mortgage investments turned sour, has changed its strategy and expects a net loss of close to $1 billion in the fiscal year to end-March." http://www.ft.com/cms/s/1a127706-59...eferer=http://ftalphaville.ft.com/blog/?s=IKB
its a good policy. the more it lends and the more it is exposed to financial ruin. the more likely it will be looked after and helped. remember citi bank is too big too fail. do you honestly think you are going to see a headline that citibank has gone under. with rubin at the helm speaking to bernanke every day they know every fed move in advance by three weeks.
Don´t forget "BLANKY" - Lloyd Craig Blankfein - most probably he has a red hotline directly to Henry "Hank" Paulson´s office !