Chronicles Of Depression 2.0: #184

Citigroup Loses on Credit-Card Securitizations as Payments Lag

Aug. 4 (Bloomberg) — Citigroup Inc. reported its first loss since at least 2005 on credit-card securitizations, signaling that risks may be growing in a business that generated $3.5 billion of revenue in the past three years.

The biggest U.S. credit-card lender lost $176 million in the second quarter packaging card loans into securities, the company said in an Aug. 1 regulatory filing. The New York-based bank completed fewer deals and was forced to mark down its own $9 billion stockpile of the debt instruments and other stakes the company amassed while selling them to investors.

Led by Chief Executive Officer Vikram Pandit, 51, Citigroup manages about $202 billion of credit-card loans worldwide, about $111 billion of which have been turned into securities and sold, according to the filing. Delinquencies on the securitized portion have jumped by 16 percent since the end of last year to $2.16 billion as of June 30, Citigroup said. The firm’s results may portend similar losses for rivals.

Emphasis added by me.

“Don’t count your chickens before they hatch.”

A chicken owned by CitiGroup would be sliced and diced down to its toenails and sold off as paper promises. But all those people holding the shares for egg profits? Fucked! Because CitiGroup also sold shares on profits to be made from the full-grown chicken’s corpse!

Welcome to the Bizarro self-defeating suicidal world of ubercapitalism.

And you wonder why the entire corrupt Ponzi scheme is falling apart around you?

Educate yourself
before it’s too late!

Explore posts in the same categories: Bank Collapse Watch, C.O.A.T. - Money, C.O.A.T. - Scams, Depression 2.0

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