Opinions and observations expressed on this blog reflect the authors' individual experiences and should not be construed to be financial advice. None of the members of this blog are licensed financial advisors. Please consult your own licensed financial advisor if you wish to act on any recommendations here.

Thursday, January 13, 2011

Gasp! Citigroup almost failed in 2008!

I have to say that this is the least surprising article I've ever read in my life. http://www.huffingtonpost.com/2011/01/13/citigroup-was-on-the-verg_n_808721.html

The thing a lot of people who don't know much about the financial crisis don't realize is that from about August of 2007 (yes, I know that I wrote 2007) through when the crisis hit in full in the late summer of 2008, we were at all times on the verge of a major disaster. It was just a question of what the tipping point would be. There were about a half dozen major financial institutions including Merrill Lynch, AIG, Lehman, Bank of America, Citigroup, Wachovia and a few others that were all so imperiled by their massive write-offs of mortgage related assets and/or bad loans that they were all just sitting around, waiting for one or the other to fail. Whichever one went would take the rest with them.

No comments:

Post a Comment