Two Plus Two Newer Archives  

Go Back   Two Plus Two Newer Archives > Other Topics > Business, Finance, and Investing

Reply
 
Thread Tools Display Modes
  #11  
Old 11-29-2007, 01:14 AM
RockyElsom RockyElsom is offline
Senior Member
 
Join Date: Nov 2007
Posts: 107
Default Re: who\'s buying Citigroup

[ QUOTE ]


Maybe, but Citigroup is run by a bunch of morons. Just compare the costs of their recent debt and equity financing to see what I'm talking about.

[/ QUOTE ]

Nice how you call the morons after the fact. Thanks for playing!
Reply With Quote
  #12  
Old 11-29-2007, 01:54 AM
pig4bill pig4bill is offline
Senior Member
 
Join Date: Dec 2005
Posts: 2,658
Default Re: who\'s buying Citigroup

[ QUOTE ]
[ QUOTE ]
Too good to be true? The company takes out what amounts to a subprime mortgage, and pays 11% interest. That sure sounds like desparation. Too good to be true, lol.

[/ QUOTE ]

It's actually a great deal for Citi, all things considered. Thinking of this as paying 11% in interest is entirely misleading, given that the mandatory conversion provision.

[/ QUOTE ]

Yeah, so that after the conversion, it's highly dilutive. Nice.
Reply With Quote
  #13  
Old 11-29-2007, 01:57 AM
pig4bill pig4bill is offline
Senior Member
 
Join Date: Dec 2005
Posts: 2,658
Default Re: who\'s buying Citigroup

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
Too good to be true? The company takes out what amounts to a subprime mortgage, and pays 11% interest. That sure sounds like desparation. Too good to be true, lol.

[/ QUOTE ]

You are trying to make a complex transaction seem too simplistic.

Jimbo

[/ QUOTE ]

Maybe, but Citigroup is run by a bunch of morons. Just compare the costs of their recent debt and equity financing to see what I'm talking about.

[/ QUOTE ]

I think when you call the citi mgmt team a bunch of morons, the onus of proof falls on your shoulders, not anyone else. The mgmt team, I daresay, has a pretty good pedigree. there may be slightly more than meets the eye to this transaction.

In any event, I would welcome a post by you with thoughtful reasons to backup your statements.

[/ QUOTE ]

Morons, maybe not. Excessively greedy and imprudent, certainly. Inadequate, or no DD on a lot of garbage paper. And then trying to hide it by putting off the writedowns as long as possible.
Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump


All times are GMT -4. The time now is 03:31 PM.


Powered by vBulletin® Version 3.8.11
Copyright ©2000 - 2024, vBulletin Solutions Inc.