Saturday, November 22, 2008
Citigroup is clearly on the rocks. One has to assume that the Treasury and The Fed are again working overtime this weekend on some sort of scheme to rescue (if you can call it that) the bank. Many indicators point to either a nationalization of the bank, a break-up, or a combination of these, happening this weekend. It would appear that the leak of President-Elect Obama's pick for Treasury Secretary was timed to give added legitimacy to any negotiations which will likely involve the potential nominee Timothy Geithner.
If the Fed and Treasury are plotting and planning this weekend, it would appear that the negotiations were not happening at the Citigroup building this morning. There were no abundance of black town cars parked outside. So, perhaps, negotiations are being undertaken downtown at the NY Fed offices?
We'll keep a close eye out. Something will happen this weekend.