Just when I thought I had seen it all. How naive of me. http://www.bloomberg.com/apps/news?pid=20601109&sid=a1liVM3tG3aI&refer=home
Same thing happened with CityBank during the 1920s, it had these special investment vehicles where it dabbled in risky products off its books. Hell even Enron did that, what's important is how are these SIVs capitalized? With the company's stock? We sure hope not.
this is why i think in my humble opinion the stock market will head significantly lower. citibank have level 3 assets of $1.1 trillion dollars. they still mark them internally and probably optimistically. the market has now wised up to this and the other banks and have realised that $1.1 trillion valued correct at say 10 percent less ( 110 billion dollars ) puts citi bank under and out the game. same with the other banks. now the banks will do everything in their power to stop these being valued mark to market. but the market has already valued them for the banks and shorted the entire sector and related. hene no massive pullbacks for the financials and the main indices rallying very little every now and then. vicous circle. i said very early this year and back end of last year the banks on paper were bankrupt. im still short lehman to this day. i think they go under.