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Citigroup Sivs Draw $7.6 Billion Of Emergency Funds


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Nov. 6 (Bloomberg) -- Citigroup Inc., the largest U.S. bank by assets, provided $7.6 billion of emergency financing to the seven structured investment vehicles it runs after they were unable to repay maturing debt.

The SIVs drew on the $10 billion of so-called committed liquidity provided by Citigroup, according to a Securities and Exchange Commission filing yesterday. Shares fell to the lowest since 2003.

Citigroup's disclosure came a day after it announced as much as $11 billion of debt writedowns linked to U.S. subprime mortgages, and the resignation of Chief Executive Officer Charles O. ``Chuck'' Prince III. The New York-based bank also said in the SEC filing that the amount of securities it owns that are considered hardest to value, known as Level 3 assets, rose 42 percent in the third quarter to $135 billion.

If they are drawing on their liquidity it shows that investors are backing away from the sector as a whole and they are not really differentiating.''

these are the lucky ones.

Edited by crash2006
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Good grief, I'm looking at all the thread titles on the main board right now and it looks like some sort of a parody of a doomsters wet dream.

You just couldn't make it up. And Mervyn King says that conditions have stabilised somewhat since August?

Its got pretty bad out there, merv has warn everyone that the financial problems are about to explode.

Robert Rubin is buying gold.

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Thanks to Cgnao and some other posters I've decided to have a backup plan incase things go tits up. I have a friend in asia who owns a farm and I plan to go and live on the farm and work for them, it's far enough away from the nearest town so that people can't come and steal/ take it over (30km away) but still close enough to travel to in order to sell goods.

I think everyone should make their own plan, and most importantly make sure you leave before it's too late. If the country enters a hyperinflationary crisis and suddenly plane tickets cost twice as much- don't worry about the expense just leave as fast as you can, one way ticket!

I think I'm now in a better position than even Goldfinger is :P Unless he knows someone with a remote farm too..

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Thanks to Cgnao and some other posters I've decided to have a backup plan incase things go tits up. I have a friend in asia who owns a farm and I plan to go and live on the farm and work for them, it's far enough away from the nearest town so that people can't come and steal/ take it over (30km away) but still close enough to travel to in order to sell goods.

I think everyone should make their own plan, and most importantly make sure you leave before it's too late. If the country enters a hyperinflationary crisis and suddenly plane tickets cost twice as much- don't worry about the expense just leave as fast as you can, one way ticket!

I think I'm now in a better position than even Goldfinger is :P Unless he knows someone with a remote farm too..

Watch out for that Bird Flu! :rolleyes:

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