According to the most proudly “plainspoken and irreverent” financial site Fool.com, in their “This Week in Banking” article, “Citigroup (NYSE: C) is reportedly close to a deal to unload $12 billion in debt associated with leveraged buyouts - LBO - to a group of private equity firms”.
What they omit to say is that the same bank funded this private equity group which means they’re “selling” the mortgages … to themselves :). Don’t be in disbelief, apart from being able to tell lie by omission, the rationale behind is that they can also report higher gains on the sales than if they sold them on the open market. Doesn’t this remind you of Enron’s cooking?
This could mean that the Big Banks crisis is not yet fully discounted in the news as some “surprises” are still in the tube for the mass public.
Links in Technorati
Add to del.icio.us
The fool are just a fool, who ever listen to them are just a fool that why they call themselves a fool for a reason.