When will the lunacy stop? How much money has been sent Citi by the government? At last count we were at 40 Billion. Now we are hearing the government will step in again possibly upping their stake to 40%? Can anyone explain to me why more money is the solution? This "bank" stopped functioning as a bank years and years ago. It stopped marking its assets to market properly years and years ago. We have no idea what the value is at Citi. They are not making small business loans (they are not able to), they are not making personal or mortgage loans (they are capital constrained due to an upside down balance sheet (more liabilities than assets). So other than an ATM machine, what is Citi? Its over Washington. Citi stopped offering value when they were first to raise ATM fees to $3.00. That, in hind sight was the leading indicator that their business model was malfunctioning.
Why has Washington decided that the Executives that brought on the Citi mess while misrepresenting asset value in order to pay gigantic bonuses on bogus profitability SHOULD REMAIN IN CHARGE OF US GOVERNMENT MONEY? Has anyone familiar with the capital markets funding process ever seen a funding above market values raised for a company and management team that has failed by over extending their business model, not managing their risks, and expects to retain their position?
Santellian rant aside, what value does Citibank bring systemically to this country other than managing existing accounts and loans? Now compare that value with the amount of value Citibank has removed from our economy. I don't know the answer to that one, but our government has staked he bad side of the bank.
Real investment, not speculation, in your business is determined by faith in management, faith in business strategy, and importantly historic performance.
Set your goal each day to improve those key areas. You'll likely not need outside funding if you do, and you'll be amazed how much of it will be available since you do not need it.
Build value every day. Take care in leveraging the value you have built.
Brad van Siclen
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