1) There is no bank run. Citi's customers and partners are staying put. And Here's a Real (not a fictional) News Flash - Citi has plenty of reserves. 2) Citi is well reserved and has trillions in assets. Citi is a way different deal than the investment bank targets the short raiders attacked previously. The unregulated reserve ratios of the investment banks were scary and since there are no investment banks left one might conclude the model did not work. The regulated bank is a completely different model and requires plenty of reserves. Citi is a regulated bank with way more reserves than the IBs that failed due to insuffecient reserves. 3) Three and three is a biggie - the SEC meets Monday for an EMERGENCY session and will be banning short activity. 4) New Treasury Secretary, Geithner, is huge for the banking industry and understands the importance of healthy viable banks.
What do I see for this week's special Thanksgiving recipe boys and girls? 1) 1/2 Cup of SEC Brand Short ban 2) 1 Cup of SEC Uptick rule 3) 4 Cups of Massive short covering 4) 5 Cups of Massive long investments 5) 1 TBSP triple witching options 6) 2 TBSP Fed statement, "We will support our vital financial institutions" *Bake for 2-3 days and recipe should render $8-10/share.
jmho, Happy Thanksgiving to all Americans, we deserve it. Watch and learn. The truth is out there.
oops. my error on the witching Friday. If it helps though you can replace that problem for the shorts with this one: wait until the bidding war starts up over Citi. Not that they are even for sale at this point. I happen to believe they can make it fine on their own however if you think the bidding was aggressive over Wachovia just wait for the bidding over Citi. There will be way more than 2 domestic banks fighting over the crown jewel of international banking.