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Nutmegger Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Nov-27-07 11:00 PM
Original message
Stocks Rally After Citi Secures Capital
Source: Associated Press

NEW YORK (AP) - Wall Street rebounded Tuesday after the Abu Dhabi Investment Authority said it will invest $7.5 billion in Citigroup Inc. (C) - a vote of confidence for the nation's largest bank, which has suffered severe losses amid the ongoing crisis in the mortgage market.

The Dow Jones industrials rose more than 200 points in yet another volatile session as investors were hopeful the financial sector can remain healthy despite the ongoing credit crisis. The banking industry has been battered in recent months as defaults on home loans have risen and rendered some mortgage-backed securities essentially worthless.

Major financial institutions, including Citi and its competitors, have had to book some $80 billion of writedowns on those holdings - a trend that has left the markets nervous about the full extent of the damage from soured loans. Citi's ability to secure a capital injection raised hope others might be able to do the same.

"The Citi deal is certainly a relief after a series of negative news on Monday with respect to the financials," said Todd Salamone, director of trading at Schaeffer's Investment Research. Funds like Abu Dhabi's "that have plenty of cash may be viewed as a potential rescuer given the balance sheet troubles the banks are having. A weak dollar makes it that much more possible."

Read more: http://apnews.myway.com/article/20071127/D8T68TNG1.html
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Jackpine Radical Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Nov-27-07 11:02 PM
Response to Original message
1. All that volatility is a sure sign of lunatics at the wheel,
trying to steer their way across a chaotic void of unknown dimensions.
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Bozita Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Nov-27-07 11:14 PM
Response to Original message
2. How long do you think that's gonna go on?
IMHO, not long at all.
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gratuitous Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Nov-27-07 11:30 PM
Response to Reply #2
3. Ah heck, Abu Dhabi can afford it
And they'll probably shell out several billion dollars every time their moneybags pals make stupid investments and push a load of debt onto cash-strapped consumers.

ABCNews actually had a commentator on tonight who talked about how this little investment actually indebted Abu Dhabi to the failing loan industry.
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Bozita Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Nov-27-07 11:36 PM
Response to Reply #3
4. Big Carlyle Group fatcats are loaded up on shorts.
We ain't talking undies here.
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Sultana Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Nov-27-07 11:59 PM
Response to Original message
5. ...
what are they going to buy next? :eyes:
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Bozita Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Nov-28-07 12:03 AM
Response to Reply #5
6. The house next door.
Have you seen the home foreclosure numbers?
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Nutmegger Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Nov-28-07 12:05 AM
Response to Reply #5
7. Welcome to DU!
:toast:
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Sultana Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Nov-28-07 12:08 AM
Response to Reply #7
9. Thank you very much,
it's a pleasure to be here :D
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CountAllVotes Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Nov-28-07 09:59 AM
Response to Reply #9
12. Welcome to the DU SillyFlower
:hi: and WELCOME!!! :D


:dem:
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Bozita Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Nov-28-07 12:07 AM
Response to Reply #5
8. ooops, ... welcome to DU
We're an interesting bunch.

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regnaD kciN Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Nov-28-07 12:42 AM
Response to Original message
10. With steep drops and/or sharp climbs virtually every day...
Edited on Wed Nov-28-07 12:43 AM by regnaD kciN
...they ought to consider moving the Stock Exchange from Wall Street to Six Flags Magic Mountain.

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JCMach1 Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Nov-28-07 04:03 AM
Response to Original message
11. @ 11% interest!
I'll take that deal... Where can I buy CITI bonds?
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