Citigroup, The Enron Of The Financial World

Citigroup Inc (C) touched a 5 year low yesterday and we’ll be seeing C in the low 20′s for sure as one smart commenter predicted on this site. As the news breaks about C’s “not on the balance sheet” Structured Investment Vehicles (SIVs), I can’t help but wonder if Citigroup is now the Enron of the financial world? Emphasis mine.

Citigroup said it has no plans to mimic HSBC’s move. So far, Citi (NYSE:C) has committed $10 billion in liquidity to the seven structured investment vehicles it manages on an ‘arm’s length’ basis, and has kept them off its balance sheet — meaning Citi has not been counting the SIVs’ debt as its own. [via CNN Money]

Citigroup better come clean quick or its over for them.

About Tom

Blog owner of Neural Market Trends
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4 Responses to Citigroup, The Enron Of The Financial World

  1. Citysherry says:

    PUT!

    Everytime you post a stock post, I’ll either put or call just for fun.

  2. Tom says:

    Funny, but you might be onto a good contrarian indicator!

  3. sherry says:

    You mean you’ll call when I put?

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