Citigroup gets the bailout that was first given to it under the guise of a Wachovia purchase.
The 'usual suspects' will now bid up JP Morgan swaps and short the commons with perhaps some puts and straddles for the V. JP Morgan will get a similiar deal. Of course if Citigroup and JP Morgan get the deal, Wells Fargo has to get something. I doubt Wells though will give back the illegal tax break gifted by the Treasury when their bailout comes. Can't wait to hear a Wells spokesperson say well this is just for the 'Wachovia' part of the house.. our fundamentals are strong.
And then the Bank of America retrade with the insolvent 'blundering herd'.
Back when I was a pup, I was the manager of a 'pre-internet' weekly. We were free to the public and survived on only advertising revenue. Had to hire dispatchers in order to run out and pick up checks in order for ad copy to make the deadline.
One of our dispatchers was from the Soviet Union. He was formerly the manager of a petrochemical factory and part of the nomenklatura. He only took the dispatch job because he 'needed time' to improve his English.
One evening, over a vodka hydration session, he regaled me with stories of how he and his buddies would party in undisclosed locations with Western goods - fancy TVs, drinks, food - esposuing the commie ethic while reveling in the 'vida loca'.
I can hear his voice now as he often said to me ' You see in Soviet Union we were capitalists... we were always capitalists...we were just bad capitalists'.
Starting to really appreciate that statement.
Only in Amerika!