Friday, November 7, 2008

Citadel on the verge of blowing up

Another leveraged hedge fund, is in trouble. Last month, they forced a retraction from a blogger who stated the fund was down over 25%.

Now they are down over 40%, and selling multi-billion dollars worth os stock, and this time it is covered by the WSJ. Now that Citadel is on death watch, the banks that lent them the money are now asking for a bailout!

Hedge funds are selling billions of dollars of securities to meet demands for cash from their investors and their lenders, contributing to the stock market's nearly 10% drop over the past two days...

One of the biggest hedge funds, $16 billion Citadel Investment Group, is being asked by several major banks to post additional collateral to cover big losses on its investments, according to people familiar with the situation.

Citadel, which is run by Kenneth Griffin, was until recently considered a possible savior for troubled Wall Street firms. But his biggest hedge fund has fallen nearly 40% this year, prompting the firm to hold conversations with lenders including Goldman Sachs Group Inc., Deutsche Bank AG and Merrill Lynch & Co. that finance Citadel's trades.

Citadel executives say the calls for more cash are a normal part of business when securities they hold fall in value, and they emphasize they have significant amounts of cash to satisfy their lenders. They say they have met all the demands for collateral. Rumors that the firm was having problems led it to hold a conference call two weeks ago in which it said it was holding 30% of its capital in cash and Treasurys and had $8 billion in credit lines it has yet to tap. The firm also said some of its businesses are doing well this year, that it has reduced risk and its use of borrowed money, and that performance has improved recently.

Lenders are hoping regulators would orchestrate a settlement among the companies involved in Citadel's loans if necessary, according to a person familiar with the situation. "Citadel is a valued client, and we continue to do business with them as usual," said Ed Canaday, a Goldman spokesman.

Citadel is blowing up, and Wall Street thinks it's the Obama election that is knocking down stocks. He'll have his first press conference today, and then we'll actually see what the market thinks.

But with rate cuts across the board, you need to be a buyer at these levels, and not a seller.


Anonymous said...

I rarely leave responses, but i did some searchng aand wound up here "Citadel on the verge of blowing up".
And I do have 2 questions for you if you ddo not mind.
Could it be just me or does it look as if like a few of the comments appear as if they are left by brain dead
individuals? :-P And, if yoou are posting on other social sites, I'd
like to follow everything neew you hhave to post. Could you make a list of
the complete urls of your shared sites like your twitter
feed, Facebook page or linkedin profile?

Feel free too surdf to my website ... Samsung appliance repair
for Phoenix (

Unknown said...

I am a private loan lender which have all take to be a genuine lender i give out the best loan to my client at a very convenient rate.The interest rate of this loan is 3%.i give out loan to public and private individuals.the maximum amount i give out in this loan is $1,000,000.00 USD why the minimum amount i give out is 5000.for more information contact us email

Your Full Details:
Full Name :………
Country :………….
Sex :………….
Tel :………….
Occupation :……..
Amount Required :…………
Purpose of the Loan :……..
Loan Duration :…………
Phone Number :………
Contact email:

Bobby Mughal said...

Bade Achhe Lagte Hain 2 is a upcoming Hindi Indian soap opera that will
premiere on 30 August 2021 at 8:00 P.M. in Sony Entertainment Television.

Dance Plus 6

Unknown said...

Mehndi Hai Rachne Wali is Star Plus & Hotstar started newly launched Drama Serial
Raghav puts necklace on Kirti, Kirti thanks Pallavi, Pallavi says thank Raghav

Bhagya Lakshmi

Aapki Nazron Ne Samjha said...

From MX Player original hindi shows to Hindi dubbed shows you can make your
weekend full of entertainment with these top 10 hindi web series streaming

Bobby Mughal said...

Zindagi Mere Ghar Aana (Star Plus) Cast and Crew, Roles, Release Date, Trailer.
Zindagi Mere Ghar Aana is a Star-Plus tv show. This tv show was produced by.


Saath Nibhana Sathiya said...

Gautam and Dhara Pandya, a middle-class married couple, manage the Pandya Store.
Apart from their business, Dhara also looks after Gautam's three younger siblings.

Dramacool said...

DramaCool is korean tv kshow123 website which provides latest
Korean drama, movies, Kshow and kissasian dramas with english
subtitles online free in hd quality. DramaCool for everyone!