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In a Bloomberg TV telephonic interview, Christopher Whalen, managing director of Institutional Risk Analytics, discusses the possibility that Citi may file for bankruptcy, which according to him is "inevitable". Our advice to Vikram regardless of what he does - don't hire Lazard if you need a DIP.

According to CNBC sources, NY AG Cuomo has issued a subpoena to Merkin to explain his relationship to Madoff, some charities, and encompasses Ezra's Ascot and Ariel funds.

********UPDATE********

"At least 10 prosecutors are involved in the investigation"..... uh oh, they really are regrouping forces on this one

Buffett's cronies finally waking up

We made some predictions yesterday about the bankruptcies to hit dockets today.... and they are starting to roll in:

With the public's attention having been exclusively focused on Bernie, his sons Marc and Andrew, and Bernie's "three-man accountant company" lead by David Friehling, a question that is intriguing more and more people is who/what/where are Frank DiPascali, the 51 year old CFO of Bernard L Madoff, and Charles Wiener, Bernie's 50 year old nephew, listed as Director of Administration, who were the only other tenants on floor 17 of 885 Third Avenue.

"Team, I am sure all of you saw my letter last week sharing something very personal with the Apple community. Unfortunately, the curiosity over my personal health continues to be a distraction not only for me and my family,but everyone else at Apple as well. In addition, during the past week I have learned that my health-related issues are more complex than I originally thought.

According to TrimTabs, record $148 Billion in Hedge Fund outflows in December.

Deleveraging may have a day or two to go.

Diplomacy 101:

Maria Bartiromo: "Should people be shorting Citi at $4.53?"
Meredith Whitney: "I would diversify out of financials here."

There is a glimmer of hope: "I would be buyer of American Express.... at $15"

January 14, 2009

From: Vikram Pandit

Dear Citi Colleagues,

I want to make sure you know that we’ve moved up our Q4 2008 earnings announcement to this coming Friday, January 16. Since we are ready to release 4th quarter earnings and talk about 2009 and the future, we saw no need to wait.

District Judge Lawrence McKenna upheld the bail ruling... Guess the choppers on Lex and 64th will keep on bugging Madoff neighbor Matt Lauer indefinitely. We once again push forward the idea for converting the penthouse at 133 East 64th to a museum of Unmitigated Greed. $25 entrance fee... Start recouping those losses already!

In a first for 2009, a $200 million loan BWIC was distributed earlier this week, indicating the deleveraging of hedge funds' credit books is far from over.

In a memo to its employees, the struggling newspaper company announced that all workers, including CEO Craig Dubow, will take one week unpaid leave this quarter to help the publisher save money.