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Citi $900m payment fiasco - effect on summer analyst conversion?

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Citi $900m payment fiasco - effect on summer analyst conversion?bakag92575August 22, 2020 - 1:49pm

What does everyone here think this will mean for the 2020 SAs? The guarantee was made of an offer subject to "minimum requirements", and Citi are probably looking long term wrt this, so would assume it would have no effect. Would be interesting to know opinions on here though.

Aug 22, 2020 - 2:21pm

No effect at all - if you read the original complaint for 1:20-cv-06539, the bonds were trading at 30, prepay required a three day written notice, and the admin agent only sued (1:20-cv-06352) and demanded an accelerated payment after the payment was already made (sort of implies the suit was filed post hoc). The freeze on Brigade's funds is a good start, and Citi has a pretty solid case. Net of some legal costs, I'm sure they'll recover what they lost, so no real impact to SAs tho I'm guessing some compliance will get axed. Also, C has like 300BN+ cash, and while $900MM is big for a fuck up, I just don't think it's a firm-shuttering loss.

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