41. Citigroup, It Could Happen
The current decline in the stock price is reflecting a series of fears related to loans and security values that cannot be actualized without a severe setback in the economy and a very rapid increase in interest rates, Bove said.
Citigroup has access to U.S. Federal Reserve funds, is working at insuring some of its debt and is reducing its balance sheet faster than any other company in the banking industry, said Bove, who believes these steps backstops the bank’s liabilities.
“It would take a Depression every bit as large and long as the 1930s debacle to shake this company’s viability,” Bove said.