Lies, Damn Lies and “Reconsideration Events”
November 27, 2007 – 8:17 amA “reconsideration event” is when an accounting entity, for example Citigroup, does something for a separate entity, for example a Citigroup “sponsored” Mortgage Conduit, that suggests that all the apparent protections Citigroup’s stockholders seemed to have from the risks posed by the subprime mortgages in the conduit didn’t amount to a handful of chicken fodder. This event might give one reason to reconsider Citigroup’s stockholder’s position.
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