Citi May Have a New Mess on Its Hands.

The article predicts that Citigroup may face an exposure because of financial obligations tied to the commercial paper market which is a critical source for short-term financing. At issue are those collateralized debt obligations (CDO), entities that issue securities often backed by subprime mortgages pooled in tranches and sold to investors based on their risk tolerance. However, the critical issue here is Citigroup's exposure through financing commitments to about a dozen CDO, including three managed by executives of the Bear Stearns hedge funds.