Chillin' out till it needs to be funded
Citigroup’s widely vaunted 15 cents a share( Bank Results Season: Citi finally stripped of dignity) celebration on the street yesterday climaxed into a funny jibe at Pandit’s tenure and Citi starts the day deep in the red as leadership changes hands again at Citigroup(Bank Results Season: Citi finally stripped of dignity).
Though Chairman Parsons left after a full tenure at Citi in March 2012, the current President and COO John Havens and Chief (CEO) Vikram Pandit who took over in difficult times in 2008 left a day after earnings announcements from the still joined at the hip Citigroup. Citigroup has sold off its broking business and is under pressure to exit insurance and other allied Financial Services businesses in the new regulatory regime.
Last Week: Citi gets rid of Morgan Stanley baggage (ADVANTAGES.US)
The bank was earlier amongst the ignominious few that failed the Fed stress tests (Bank Stress Tests 2012)and its plan to distribute higher payouts to shareholders was rejected by the Fed. The bank has been able to help the Treasury sell off most of the $45 B investment it had to make in the bank in 2008 to save one of the Top 4 then from going under. (Citi’s extra dividend caught in a snarl-up)
The Citi shares are still up more than 35% in 2012 before yesterday’s earnings ‘POP’ and today’s crackle and fizz when markets open in little more than a half hour. The second of the Presidential debates may well hold the market’s strings throughout the day today as elections are a hair breadth away for the US Economy.
The new CEO Mike Corbat was seemingly also a candidate for BofA’s CEO ship earlier this year according to Bloomberg’s scoop published while everyone was busy scanning Goldman Sach’s unimaginable earnings blast this morning.