STAFF NEWS & ANALYSIS
Why Is Citi Gobbling Derivatives?
By Daily Bell Staff – August 19, 2016
This U.S. Bank Is About to Relive the 2008 Derivatives Nightmare … Deutsche Bank AG (NYSE: DB) – with its stock now trading at a 30-year low – was recently called the world’s riskiest financial institution by the International Monetary Fun … In a last-ditch effort to save itself, DB is trying to dump a bucket load of credit derivatives … You would think no one would buy these weapons of financial mass destruction… but you’d be wrong. – Money Morning (here)
The bank in talks to buy the Deutsche Bank derivatives is Citigroup Inc. according to this article. Well written and focused, it asks why Citi would buy more derivatives when last year Citi purchased $250 billion from Deutsche Bank.
The idea is that Wall Street is simply too greedy for its own good