Charlie Gasparino reports that Vikram Pandit just held a conference call which CG “was listening in on in my robe and underwear.” Apparently Count Vikula made three points:
1. The problem with stock price is based on fear mongering.
2. Our capital position is very strong.
3. We’re keeping the company together. Smith Barney will not be spun off.
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- Use the Bloomberg command
NH BLG_DEALBREAKER <GO>
to access Dealbreaker
Those damn rumor mongerer…ers. I wish they’d go back to flogging fish.
First to see through this nonsense.
Sounds like Lehman before the fall….
“When the stock price is up, it is due to my managerial excellence.”
“When the stock price is down, it is due to fear-mongering.”
Jimmy C, Stan O’N, Dick F, and now Vik makes a fourth for bridge.
“When the stock price is up, it is due to my managerial excellence.”
“When the stock price is down, it is due to fear-mongering.”
Jimmy C, Stan O’N, Dick F, and now Vik makes a fourth for bridge.
Panditjee is looking for a strategic alliance with the Somali pirates — He’s walking around 388 going “Shiva me timbers!”
Citi is in trouble but they are getting the shit shorted out of them.
Question: Who is shorting this big financials into the ground? Hedgies? If so, which ones since they must have some nice YTDs….
“When I post once, it is due to my techincal & computational excellence”
“When I post twice, it is due to an internal server problem at DB”
Its not only rumor mongering, also wideclopses roaming wild and free through the hallways puts negative presure on the share price.
what about the news that Pandit may step down???
@9…wideclops lives! So glad I identified that chick as that species the other day…
I Am Legend.
I wonder if Viki has an opinion on wideclops?
and when I post thrice, it’s all Pandit’s fault.
Vik “the jerk” resigns by end of day today
and when I post thrice, it’s all Pandit’s fault.
gotta love the wideclops
Pandi is right, the problem with the stock is fear mongering. But there is fear mongering because no one trusts that he is telling us what is on the balance sheet. Citi is too opaque.
For the sake of argument, let’s say Citi is in decent shape – especially given the $10 billion’s they have raised this year.
The easiest way to restore confidence in the firm would be for Paulson and Bernanke (who already have representatives at the major banks) come out and say that their “best people” have looked at Citi’s books and believe that they are in good shape. Further, Treasury stands ready to buy another $25B or $50B of preferred stock should they feel that capital position slips.
That would give the market confidence that there are no icebergs looming on that balance sheet and would preempt a run on the bank.
All of this talk about banning short sales, etc., is counterproductive. If you want to manage the price of the stock, don’t do it by managing short sellers but by killing them. Look at the Porsche/VW example!
November 20 (Bloomberg) — The Somali pirates, renegade Somalis known for hijacking ships for ransom in the Gulf of Aden, are negotiating a purchase of Citigroup.
The pirates would buy Citigroup with new debt and their existing cash stockpiles, earned most recently from hijacking numerous ships, including most recently a $200 million Saudi Arabian oil tanker.
The Somali pirates are offering up to $0.10 per share for Citigroup, pirate spokesman Sugule Ali said earlier today. The negotiations have entered the final stage, Ali said. “You may not like our price, but we are not in the business of paying for things. Be happy we are in the mood to offer the shareholders anything,” said Ali.
The pirates will finance part of the purchase by selling new Pirate Ransom Backed Securities.
The PRBS’s are backed by the cash flows from future ransom payments from hijackings in the Gulf of Aden. Moody’s and S&P have already issued their top investment grade ratings for the PRBS’s.
Head pirate, Ubu Kalid Shandu, said “we need a bank so that we have a place to keep all of our ransom money.
Thankfully, the dislocations in the capital markets has allowed us to purchase Citigroup at an attractive valuation and to take advantage of TARP capital to grow the business even faster.”
Shandu added, “We don’t call ourselves pirates. We are coastguards and this will just allow us to guard our coasts better.”
This is becoming formulaic.
Next, they’ll float the idea that they are in fact exploring capital raising “opportunities.”
@17: this was done better, and funnier, yesterday.
@19
Sorry.
It will never ever happen again.
Never.
Ever.
Gonna raise taxes.
MSFT mkt cap > JPM + C
@17 – THANK YOU!
Gotta luv that 3-page whiskey spread in the WSJ today. Tough times call for the hard stuff.
What are the 1st year Somali Pirate numbers??
The amount a first year Somali Pirate can expect to earn
Citi is not being shorted in any great strength.
The high water mark for short interest in finanical companies was around July 15, 2008. Since then it has been steadily decreasing.
From Short Alert research:
Financial Sector (933 Companies) – Short Interest as a percentage of Shares Outstanding
07/10/08 6.29
07/28/08 6.12
08/12/08 5.90
08/26/08 5.83
09/10/08 5.72
09/25/08 5.01
10/09/08 4.26
10/28/08 4.08
A decrease of 35.1% in the short position from 7/10/08 to 10/28/08. Net buying every single period. Total current value of short position: $64.8 Billion.
My brother works at C. Fixed income sales. Yesterday, he told me that his boss and the guy he sits across from (who had been there 16 years) were fired. The guy across from him was doing fine business-wise, “paid for himself” with the commissions he brought in. So C is just firing to get to that 50,000 number. It is indiscriminate. I understand getting rid of a junior i-banker in media, fine.
But now they are firing to match a number, and that to me = no clue how to manage. They are managing for the press release, not for the business.
1 day = funny
2 days = hilarious
3 days = a permanent addition to the DB lexicon
wideclops lives!!
why do the stupid news networks keep doing reports from outside of the citi building. didn’t they move HQ to Queens years ago?
@ 29
HQ is 399 Park, Long Island City is HQ of the Consumer biz, 388 is hq of the ibank
Nice symbolism with the pic. I forgot that a college student discovered that the Citi HQ would be structurally unsound in a 100-year storm.
@30 – All true, but ground zero of the Citi empire is Vikram’s sock drawer.
@19, can you post the text of the other email???
Good laugh this morning.
Go Giants
Citi and Pandit’s problem is the same as Morgan Stanley and Mack’s. They are sitting on a boatload of Level 3 assets the are probably worth 25% on a very good day (and we haven’t seen one of those in a long, long time) but they refuse to mark-to-market and the SEC let’s them off the hook calling them illiquid. These assets are NOT illiquid, you just don’t like the price the market will give you. That’s like saying my 3 bedroom house is illiquid because no one will pay my $20 million asking price. Everyone knows these level 3 chickens come home to roost sooner or later which is why these banks are getting hammered.
If the balance sheet is in good shape why not hang it out for everyone to see? Answer: Because they have $10′s of billions in bogies just waiting to cripple any investors. Thats why!
@19, can you post the text of the other email???
Good laugh this morning.
Go Giants
Last week Charlie went on air and literally kicked C in the teeth by saying “his sources” says there is in fighting within C and the board wasn’t doing there jobs. Then everyone all of sudden acted as if the end of world was coming. People feel if C falters then all large financial institutions will shake and fall.
This would explain the radical drops we’ve seen over the last couple days. I said it last week but no one believed me. Goldman Sachs conspiracy. They want C’s deposits and they commit financial terrorism to get it. This shack up in the system is so detrimental to the long term economy that now without another LARGE stimulus package the country could see a downturn prolonged well into 2011.
We need another 1.5 trillion soon.
How much you wanna bet Chuck Gasbag was wearing thong underpants.
Can somebody please do a spot on definiton of “wideclops” like Urban Dictionary would do.
Danke.
German Banker that loves his beer and governmental support
Last week Charlie went on air and literally kicked C in the teeth by saying “his sources” says there is in fighting within C and the board wasn’t doing there jobs. Then everyone all of sudden acted as if the end of world was coming. People feel if C falters then all large financial institutions will shake and fall.
This would explain the radical drops we’ve seen over the last couple days. I said it last week but no one believed me. Goldman Sachs conspiracy. They want C’s deposits and they commit financial terrorism to get it. This shack up in the system is so detrimental to the long term economy that now without another LARGE stimulus package the country could see a downturn prolonged well into 2011.
We need another 1.5 trillion soon.
Last week Charlie went on air and literally kicked C in the teeth by saying “his sources” says there is in fighting within C and the board wasn’t doing there jobs. Then everyone all of sudden acted as if the end of world was coming. People feel if C falters then all large financial institutions will shake and fall.
This would explain the radical drops we’ve seen over the last couple days. I said it last week but no one believed me. Goldman Sachs conspiracy. They want C’s deposits and they commit financial terrorism to get it. This shack up in the system is so detrimental to the long term economy that now without another LARGE stimulus package the country could see a downturn prolonged well into 2011.
We need another 1.5 trillion soon.
@33/35: this is the one I liked: short and sweet.
Posted by guest, Nov 20, 2008 12:03PM
SOMALIAN PIRATES APPLY TO BECOME BANK TO ACCESS TARP
*PAULSON: TARP PIRATE EQUITY IS AN `INVESTMENT,’ WILL PAY OFF
*KASHKARI SAYS `SOMALI PIRATES ARE ‘FUNDAMENTALLY SOUND’ ‘
*Moody’s upgrade Somali Pirates to AAA
*HUD SAYS SOMALI DHOW FORECLOSURE PROGRAM HAD `VERY LOW’ PARTICIPATION
* SOMALI PIRATES IN DISCUSSION TO ACQUIRE CITIBANK
*FED OFFICIALS: AGGRESSIVE EASING WOULD CUT SOMALI PIRATE RISK
*FED AGREED OCT. 29 TO TAKE `WHATEVER STEPS’ NEEDED FOR SOMALI PIRATES
Do you know if the first year associates are getting laid off?
@40
Nice.
*PIRATES HAVE DECIDED TO EXECUTE MORTGAGE DEFAULTERS; WILL TAKE WOMEN AND CHILDREN AS SLAVES WHILE THE MALES WILL BE HANGED!
This is all so eerily familiar…
-ex Lehman
Vik should drink his troubles away with some Mike’s hard lemonade
and shove a sham wow up his arse
Viki = toast by 5:00 tonight
Maybe Dick Fuld can save the bottom bunk for him in The Big House
I worked for Citigroup, and left at my own accord about a year and half ago, it’s the best thing I ever did. I have to admit is one of the most dysfunctional culture in the world. The problem has always been and still is, that the management has always been disconnected from the ranks, that and lack of one cohesive culture. Employees have never felt as part of the process. There is complete disregard of employees input, the arrogance of the management, and it never matter who, though Prince tried. HR is the most retarded unit of the bunch. There are government divisions that run better than Citi.
Partly, the Citi brand and the balance sheet has always given the company that sense of arrogance, that they could hire anyone they wish, so why give a damn about employees. Infighting due to difference in pay, and benefits and lack of meritocracy is systemic in the company. The board is also part of the problem.
For Citi to survive they need one cohesive theme, they need to look internally and find who they are. Perhaps they ought to look at HSBC, another global bank for clear direction.
I worked for Citigroup, and left at my own accord about a year and half ago, it’s the best thing I ever did. I have to admit is one of the most dysfunctional culture in the world. The problem has always been and still is, that the management has always been disconnected from the ranks, that and lack of one cohesive culture. Employees have never felt as part of the process. There is complete disregard of employees input, the arrogance of the management, and it never matter who, though Prince tried. HR is the most retarded unit of the bunch. There are government divisions that run better than Citi.
Partly, the Citi brand and the balance sheet has always given the company that sense of arrogance, that they could hire anyone they wish, so why give a damn about employees. Infighting due to difference in pay, and benefits and lack of meritocracy is systemic in the company. The board is also part of the problem.
For Citi to survive they need one cohesive theme, they need to look internally and find who they are. Perhaps they ought to look at HSBC, another global bank for clear direction.
The Citi may never sleep.. but it looks like its about to take a dirt nap!
Bess,
Can you post a biiger version of the Lego Citgroup building or a link at least?
Thanks,
Sachs and the Citi
or
Group Sachs
?
I hate Vikram, and await the day for his removal…but don’t any of you feel a drop of sympathy for the 300,000 employees around the world that will lose it all, just so you can take down Execs like Pandit? How could you wish for the share price to plummet, how could you enjoy the tears that will flow from hundereds of thousands of homes when they see their entire life savings evaporate in the blink of an eye. Lehman and the like were enough. This will bring the world to a standstill; the Great(er) Depression is on its way, don’t become a proud part in creating it.
The price of the stock is due to the rumor mongering, not the shitty management or completely inefficient balance sheet… Good one
I hate Vikram, and await the day for his removal…but don’t any of you feel a drop of sympathy for the 300,000 employees around the world that will lose it all, just so you can take down Execs like Pandit? How could you wish for the share price to plummet, how could you enjoy the tears that will flow from hundereds of thousands of homes when they see their entire life savings evaporate in the blink of an eye. Lehman and the like were enough. This will bring the world to a standstill; the Great(er) Depression is on its way, don’t become a proud part in creating it.
I hate Vikram, and await the day for his removal…but don’t any of you feel a drop of sympathy for the 300,000 employees around the world that will lose it all, just so you can take down Execs like Pandit? How could you wish for the share price to plummet, how could you enjoy the tears that will flow from hundereds of thousands of homes when they see their entire life savings evaporate in the blink of an eye. Lehman and the like were enough. This will bring the world to a standstill; the Great(er) Depression is on its way, don’t become a proud part in creating it.
I bought C at $55 last year. Should I sell?
@56 – agree.
Everyone, keep shorting. It’ll be your taxes in the end.
- Prince A.
I think I’m going to buy Citi with my 401k.
(All of Citi.)
Sachs and the Citi
or
Group Sachs
?
Bess,
Ever since he spoke those magic words this morning, I haven’t been able to get the image of Gasparino in his robe and underwear out of my head. Can you provide us some insight on what kind of robe/undie combo he’s rocking?
My guess is a soft silky pink robe with a superman underoos banana-hammock underneath
This whole thing is a scam and a lie – they created this crisis to destablize the banks and make a play for more centralized control:
http://yourmortgageoryourlife.wordpress.com/2008/11/18/bernanke-paulson-and-bair-testify-but-can-we-get-a-witness/
There are Docs all over the web that show they knew this was coming for the last 10 years – they discussed the risks and consequences at FDIC meetings, and they just let it all happen.
Now they want to pretend this is all a surprise.
Sorry Vik – you and Lewis are toast!