Fall in ABX sparks fresh credit fears
By Stacy-Marie Ishmael in New York and Gillian Tett in London
Published: October 31 2007 22:03 Last updated: October 31 2007 22:03
http://www.ft.com/cms/s/8d5c20e0-87e1-11dc-9464-0000779fd2ac,Authorised=false.html?_i_location=http%3A%2F%2Fwww.ft.com%2Fcms%2Fs%2F0%2F8d5c20e0-87e1-11dc-9464-0000779fd2ac.html&_i_referer=http%3A%2F%2Fsearch.ft.com%2Fsearch%3FqueryText%3DABX%2Bfears%26aje%3Dtrue%26dse%3D%26dsz%3D%26x%3D22%26y%3D10
"The ongoing crisis in the US housing market is pushing a key mortgage-linked derivatives index to new lows, threatening to unleash a further bout of credit market upheaval. The price swing in the index, known as the ABX, is particularly significant, since it is starting to reduce the value of credit instruments that carried high credit ratings, and were therefore supposed to be ultra-safe. "
Headline: $30 billion capital shortfall at Citigroup (CIBC World Markets downgrade)
NY Times excerpt: A longtime banking analyst said late last night that Citigroup may be forced to cut its dividend or sell assets to stave off what she said was a $30 BILLION CAPITAL SHORTFALL, moves that could pull down its shareholder returns for several years. http://www.nytimes.com/2007/11/01/business/01citi-web.html?ref=business
Bloated revenues AND Level III assets at GS... accounting shenanigans at an all time high.
http://ftalphaville.ft.com/blog/2007/11/01/8548/taking-the-shine-off-goldmans-glister/
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