So, Citibank. Let’s roll the tape:
I would say that there’s about an 80% chance that Citibank will not survive the next 12 months.
Currently, there is a plan to break up the banking business and the brokerage business (that is, to merge Smith Barney with Morgan Stanley). Their CEO noted, “We believe there is a lot of value in having them focused. We are not in a rush to sell businesses.” He also said that “he believed that Citigroup’s big consumer business was ‘bending the curve on losses’ and that the overall company would emerge from the current environment stronger and smarter.” I’m officially adding ‘bending the curve’ to my vocabulary (“I’m bending the curve on my writing productivity.” “I’m bending the curve on my gym attendance.”). Oh, and they replaced the chairperson of the board with Richard Parsons, who just coincidentally was on Obama’s transition economic advisory board.
Just for fun, let’s bend the curve on Citi’s market capitalization:
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