Citi “weighs options”

Bank executives argue the company is well-capitalized, but that’s simply false. And the market knows it. As I wrote a few days ago, Citi’s true leverage ratio (after backing out goodwill and intangibles from capital and adding back off-balance sheet liabilities and commitments) is somewhere between 35:1 and 70:1. Even at the lower end, that means Citi is terribly vulnerable to a decline in the value of the asset side of its balance sheet.

Also see this NakedCapitalism post for some interesting discussion of the Citi saga.

And this, from John Hempton.