If Lehman's assets get written down by 10%, then $30bn unsecured debt doesn't get paid and Citi loses $27bn out of $90bn (market cap). So Citi's shares would go down by 30%.
If Lehman's assets get written down by 20%, then that's $80bn unsecured debt unpaid, of which Citi eats $72bn (80% of Citi's market cap).
And if Lehman's assets get written down by 25% or more, that's it for Citi.</speculation> A vivid image of what should exist acts as a surrogate for reality. Pursuit of the image then prevents pursuit of the reality -- John K. Galbraith
All depends on the Bankruptcy work-out.
However, the other debt is small enough that "getting the shaft" is unlikely to topple the others. It's the $138bn figure that stands out. A vivid image of what should exist acts as a surrogate for reality. Pursuit of the image then prevents pursuit of the reality -- John K. Galbraith
At least until they have to do some debt roll-over.
Then ... who knows?
That's what I mean by "unusual consideration." I'll give it --facts available to the public-- some thought, then report. Diversity is the key to economic and political evolution.
Frankly, not Bush. Sorry, that freak is a "comma" in the scheme. The electorate will continue to seat their hoary jackasses despite it all and expecting somehow a different result ... Diversity is the key to economic and political evolution.
