Better fire up the coffee pots over at the Treasury Department and the Federal Reserve. Citi started this morning by crashing through the $2 level, trading for the first time ever with a $1 handle. It will, of course, bounce upward later this morning, as shorts cover and those smoking the Hopium decide that Citi is “cheap” at this level. But we have no doubt that regulators are preparing for emergency measures over the weekend right now.
The looming question is whether or not Citi will be pre-privatized or whether the Obama administration will continue to adhere to the failed ideas of the past and keep trying to spit into a raging inferno.