Financials
Hey KFG,
MER: Up over 2% over the last week, nothing too special going on there. MER cut its subprime mortgage provider so they will save some money there. This is a hollistic issue across Wall St firms and subprime mortgage brokers are taking baths on unpaid mortgages that they gave to customers with shotty credit
C: Citigroup is a very newsworthy company right now, on the gossip track, however. Ever since the CFO shake-up, people cannot seem to get the story straight. Below is an excerpt from todays FierceFinance newsletter:
The wackiness at Citigroup is getting even more wacky. The latest is a round of rumors that some Citigroup insiders have been spreading gossip and half-truths to "get" an ousted and unpopular executive and to divert attention from the real problems at the bank. Business Week has looked into the issue and has raised the possibility of a smear campaign. Turns out that Todd Thomson, who has been maligned for his ties to CNBC journalist Maria Bartiromo, wasn't the only Citigroup executive with a fireplace--the hardware was in place when he took over the office. And heck, it was only a gas fireplace. Seems that some people are now coming to Thomson's defense. He has remained mum as he negotiates a severance deal. All this masks some serious operating issues--was this by design?
Otherwise, Citi needs to work on cutting its costs, for which CEO Chuck Prince met with Saudi officials on. I am still bullish on this company because I am behind Prince in bringing costs down.
Citi also is toying around with issuing its shares on Tokyo Stock Exchange. Citi is one of the major Wall Street banks playing Japan right now, and having its shares on the TSE would pave the way to make it easier to buy Japanese companies. Citi recently set up a holding company there to manage its acquisitions.
Look for reports at tonights meetings from KFG Analysts on Fortress on the Optionalble
Rich
MER: Up over 2% over the last week, nothing too special going on there. MER cut its subprime mortgage provider so they will save some money there. This is a hollistic issue across Wall St firms and subprime mortgage brokers are taking baths on unpaid mortgages that they gave to customers with shotty credit
C: Citigroup is a very newsworthy company right now, on the gossip track, however. Ever since the CFO shake-up, people cannot seem to get the story straight. Below is an excerpt from todays FierceFinance newsletter:
The wackiness at Citigroup is getting even more wacky. The latest is a round of rumors that some Citigroup insiders have been spreading gossip and half-truths to "get" an ousted and unpopular executive and to divert attention from the real problems at the bank. Business Week has looked into the issue and has raised the possibility of a smear campaign. Turns out that Todd Thomson, who has been maligned for his ties to CNBC journalist Maria Bartiromo, wasn't the only Citigroup executive with a fireplace--the hardware was in place when he took over the office. And heck, it was only a gas fireplace. Seems that some people are now coming to Thomson's defense. He has remained mum as he negotiates a severance deal. All this masks some serious operating issues--was this by design?
Otherwise, Citi needs to work on cutting its costs, for which CEO Chuck Prince met with Saudi officials on. I am still bullish on this company because I am behind Prince in bringing costs down.
Citi also is toying around with issuing its shares on Tokyo Stock Exchange. Citi is one of the major Wall Street banks playing Japan right now, and having its shares on the TSE would pave the way to make it easier to buy Japanese companies. Citi recently set up a holding company there to manage its acquisitions.
Look for reports at tonights meetings from KFG Analysts on Fortress on the Optionalble
Rich
posted by Rich Golaszewski at
4:19 PM
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