With Some Help
A lot of help.
Citigroup Inc. Chief Executive Officer Vikram Pandit said his bank is having the best quarter since 2007, when it last posted a profit.
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The government’s plan to exchange its preferred stock for common shares will make Citigroup the strongest U.S. bank measured on tangible common equity, Pandit added. The transaction will also make the government Citigroup’s biggest shareholder, with a 36 percent stake.
It’s probably much easier to turn a profit when the taxpayer is paying your bills. I wouldn’t know — I pay my own (and theirs).
This news has the financials up again pre-market. I’m sure we’ll hear from CNBC how Citi is up 20%. Keep in mind that’s only 20 cents.
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Yes, and just looking at prices, you would think the financials are “cheap”.
On a side note, the $VIX still isn’t really moving higher, which tells me the panic levels haven’t reached capitulation yet. No reason to be buying here.
Comment by Randal — 3/10/2009 @ 8:33 am
I’d have to agree Randal. They’re bouncing the financials today — but they were so far down, you knew they’d bounce ‘em sometime. And that applies to the rest of the market as well.
Comment by BMB — 3/10/2009 @ 8:51 am
Dead cat.
Comment by Maria — 3/10/2009 @ 10:07 am
This is a sad commentary on America in 2009, indeed.
Had to shake my head in amazement when I saw this headline earlier today:
http://www.iht.com/articles/2009/03/10/business/11stocks.php
Comment by David — 3/10/2009 @ 11:58 am
Hey, the banks were going to have to bounce sooner or later, along with everything else.
Comment by BMB — 3/10/2009 @ 12:58 pm
I wasn’t worried about the banks. I figured if they dug themselves a deep enough hole they could start trading on a China exchange.
Comment by Fred — 3/10/2009 @ 4:30 pm