With the analyst report this morning that Citigroup could face as much as $30 billion in additional writedowns and might cut its dividend, we wanted to share Doug Kass' post from Tuesday on the writedown dangers facing financial institutions. The post originally appeared on RealMoney Silver.
On Credit
10/30/2007 7:32 AM EDT
I've been discussing lately the recent dichotomy between the performance of equities and of mortgage credit. That is, stocks have continued their ascent, while various subprime mortgage-based ABX indices have dropped precipitously.
[Monday] that trend continued. While stocks forged ahead, even the highest-rated tranches of subprime debt were decimated after a "ratings agency" suggested that the credit ratings on over $20 billion of the highest-rated collateralized debt obligations might be downgraded. ...
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