As we type, Mike Mayo and Vikram Pandit are having their long-awaited meeting. Prior to the sit-down, Mike Mayo released his "briefing book," detailing the shit he planned to nail Citi to the wall for. Given his anger over not being invited over to the bank for the last two years, and the ensuing acting out by telling people that Citi is "not to be trusted" and that not even Jamie Dimon could save that shit-hole, one would presume Mayo's list of reasons for why the bank will soon be consigned to the scrap heap of corporate history would be unimaginably damning. Here's what he came up with.
“The main question at our meeting this Friday with Citigroup management is the extent that the company is new versus times past,” writes Mayo, “At least with regard to financial targets, accounting, and corporate governance.”
Specifically, Mayo brings up the reduction in Citi’s capital expenditures from a range of $3 billion to $4 billion in 2004 to 2007 to $2 billion in 2008 and $1 billion in 2009. “Citi is not spending to improve its infrastructure as much as in the past,” concludes Mayo.
“Citi’s physical plant,” including computers, real estate, automated teller machines, etc., “may be outmoded compared to its competitors.”
The issue, he writes, is wheather Citi is investing enough in the business and whether, perhaps, it should take a hit to earnings to bring that investment up to a sufficient level.
So, that's right buckos. You get some new computers up in that bitch or you will suffer yet more of the Mayo Jar's wrath.