"Clearly the solvency issue is back on the table," said a money manager to Business Week magazine about Citi--even after receiving a $25 billion injection from the TARP. My sense is that Citi's tier one capital  ratio is in a decent position, allowing it to weather the big writedowns that seem likely. But there's still a sense in the market that Citi is treading close to the edge, even though there are no signs of a mass exodus of customer assets. Its CDS spreads have certainly widened; the issue is what happens if Citi's malaise continues and it were to start circling the drain. Is it entitled to another big TARP injection? Wasn't TARP supposed to have ended the solvency issue? Is TARP even working? There is a lot riding on the short-term fate of Citi. While I do not think of Citi as a counterparty black hole in the manner of Lehman Brothers, you have to wonder if the government will allow it to fail. What do you think?

For more:
- here's a Business Week article for background
- Goldman not enthusiastic about Citi even with government help. Article
- Cramer: Citi is dead. Video

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Citigroup news from FierceFinance