by Bill McBride on 7/25/2007 08:17:00 PM
Wednesday, July 25, 2007
NOTE: Haloscan comments are acting up again. Please try refreshing the page if the posts do not display completely. Please accept my apologies for the poor performance of Haloscan.
We've been joking about short term bridge loans turning into "pier loans", and it appears Citigroup is the proud owner of many of these shiny new piers.
From the WSJ: Chrysler Throws Salt in Citigroup’s Wounds (hat tip Brian)
Citigroup is one of the banks that will ... be left holding the bag after investors took a pass on the sale of $10 billion of loans at Chrysler’s auto unit for the company’s leveraged buyout. ... It isn’t good news for either the banks or the buyout firms. There will come a point, if we aren’t there already, when banks refuse to make new loan commitments.That is a lot of piers.
Chatter among investment bankers lately has focused on Citigroup, which is said to be clamping down especially hard on making new loans. ... Citi has the misfortune of having been involved in a lot of the buyout loans that have soured lately, including Allison Transmission, U.S. Foodservice, Dollar General and ServiceMaster. It also has a role in three of the coming megadeals that still need to be financed: First Data, TXU and Clear Channel Communications.