Friday, February 13, 2009
the end of the children's hour
...[I]n other words, the $200bn in additional equity that that Tim Geithner talks about for ALL the banks is just enough for loss absorption Citi in 2009.
Now you know why I keep saying that eventually the numbers will force Obama to let Sheila Bair clean up the mess at C, haircut the bondholders and get on with the sale of much of what we now call Citi. The markets are going to see the C numbers, the markets will react and Washington will finally be forced to have an adult conversation with the global community as to how much we haircut the bondholders.
it doesn't matter if the president thinks its workable or not. it must happen, and whalen believes it will become overwhelmingly obvious as first quarter results are reported.
obama's presidency will not shape the resolution of the financial system; the resolution of the financial system will shape his presidency.