More Financial Institution shall Bancrupt

by Supermaster for ECOBIZVOL ZONE    October 18, 2008

Citigroup who owned the Citibank has recorded its book value. And the result, they have loss for about USD 71 Zillion in this last 5 quartal. The third quartal, Citigroup has loss about USD 2,82 billion. Last year, Citibank recorded loss for USD 20,3 billion.

Another bank, Caisse d’Epargne had recorded for USD 800 million of loss. Eventough this bank has 27 million of customer and equity 20 Zillion Euros. USD 600 zillion of funding was also used to play in derivative transaction. According to Uni European Regulator, this fund is the primary keyrole of the Global Financial Crisis.

Warren Buffet, the richest investor from United States said that the fund was used by investors to do some short selling on the market in gaining profit. But there is still a problem. It’s difficult to track the investors to do such action on the market because their identity is keeping blur and no record.

CDS(Credit Default Swaps) about USD 60 zillion is a type of bond that covered it’s holder if the issuance firm failed to pay. No one even regulartory considered it as at illegal trade because there are no rules to prohibit the “dark” CDS issue.

And after investigation, AIG is also playing in such derivative instrument. This leads them to crisis.

This work is licensed under a Creative Commons Attribution-No Derivative Works 3.0 License.

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