Thursday, May 28, 2009

Citi Begging For Taxpayer Crutches Again

After briefly appearing in the critical ward, looks like Citi is back to comatose condition. Having raised $2 billion in 10 year non-guaranteed debt a week ago, the behemoth toxic asset cesspool that Vikram inherited is in the market again... for a TLGP-guaranteed trade. Good to see Citi's observant capital markets strategists know how to gauge the market's receptiveness to their garbage, and also when to hide in the shadow of taxpayer guarantees.
Aaa/AAA/AAA heard in the market with multi-part TLGP trade. Citigroup Funding offering 2y fixed and/or floater (benchmark size); and Citigroup NA offering 3y fixed and/or floater (benchmark size). Citi sole. Pricing asap.
Good to see 9 A's supporting this issue, backed by the full faith and credit of the FDIC's $0 DIF. Also, this presumably means that Citi can replace 3 flat tires for free or something like that. Sphere: Related Content
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