Folks,
The recent developments with Citi Group, one of the largest banks in the world seems to shaky with over 20 billion dollars of losses over past several quarters and recently over 50,000 job cuts announced. It makes us wonder where is it heading to. Are there companies who are willing to buy out some of citi groups business or will the government have to bail it out.
As a corporations Citi group is too large to fail completely. At the same time its too large for other companies to buy. Do companies in the market have so much liquidity? I doubt.
The only way out I see is the bail out by the government. But will that also help. The stocks of the companies which the US govenment has bailed out continue to fall. People are selling their stocks despite government buying these compaines. So where is citibank heading to. Will it become like another Lehman Brother story or will it manage to sustain itself during these rough times.... Let me know your thoughts...
By the way what's common between General Motors, Chrysler and Ford apart from they being automobile companies . Wait for my next blog on the Automobiles story.. Until then keep guessing..
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