Citigroup Spoils Option Expiry Antics with a Simple Statement of the Obvious

The usual suspects were walking up the XLF to squeeze the short interest in financials when this little truth-bomb from Citigroup hit the wire, spoiling their traditional quad witching option expiry market manipulation.

It is not over yet. The worst is yet to come. They have taken the easiest writedowns first.

You don't like to hear this do you? Well, how many times does someone have to lie to you about something important before you realize they are a liar? That they view the truth as something to convenient bend to their will to get their way, to skin you from your money? To take away your family's wellbeing?

We are in for some hard times. Don't believe much of what you hear because the lies and scams and propaganda are coming hot and heavy, and it is not designed to help you. Try to use your critical judgement, or at least your common sense. A useful step is to get your information from sources beside CNBC and Fox. Reading is a useful habit to acquire.

There is a list of interesting internet sites over on the left under the title Divertissement Éducatif. Read some. Get some other viewpoints, some other sets of facts, some other interpretations. If you are not doing so well, maybe, just maybe, you are being used badly, and you are allowing it to happen.

Gold and silver are not contingent on anyone else's word, but can be slammed by the same short term forces that make stocks go up against all reason. Now might be a good time to have some at hand.


Citigroup CFO Crittenden Expects More Writedowns on Bank's CDOs
By Josh Fineman

June 19 (Bloomberg) -- Citigroup Inc., the biggest U.S. bank, will have substantial writedowns on its holdings of collateralized debt obligations, Chief Financial Officer Gary Crittenden said.

The second-quarter markdowns won't be as large as last quarter, Crittenden said today on a conference call with investors hosted by Deutsche Bank AG.

Citigroup fell as much as 4.4 percent on the New York Stock Exchange after the comments. The shares dropped 81 cents to $19.59 at 11:42 a.m., after reaching $19.51.

To contact the reporter on this story: Josh Fineman in New York at jfineman@bloomberg.net.
Last Updated: June 19, 2008 11:43 EDT


Citi's CFO: More 'substantial' write-downs in 2Q
Thursday June 19, 1:16 pm ET
Citigroup CFO predicts 'substantial' write-downs on debt instruments in 2nd quarter

NEW YORK (AP) -- Citigroup Inc.'s chief financial officer on Thursday warned that the nation's largest bank by assets would suffer more "substantial" write-downs on debt investments in the second quarter.

CFO Gary Crittenden also said that there will likely be more write-downs related to leveraged loans and bond insurers.

Citigroup shares fell 77 cents, or 3.8 percent, to $19.64 by early afternoon trading.

Crittenden did say that Citi's second-quarter write-downs on structured debt products known as collateralized debt obligations, or CDOs, would be lower than they were in the first quarter. In the first quarter, Citigroup marked down the value of its CDOs by about $3 billion. All told, the bank in the first quarter wrote down more than $14 billion.

The executive spoke at a conference hosted by Deutsche Bank. His comments come on the heels of profit declines at three major Wall Street investment houses, and Fifth Third Bancorp's decision to raise $2 billion in capital. Futures and options broker MF Global Ltd. has also warned that tight credit spreads will weigh on its fiscal first-quarter earnings.