Citi Can’t Sneak Its Derivatives Binge Past Mike Mayo

He's onto you, Corbat.

So Citigroup has become the little investment bank that could, when everyone else on Wall Street cannot. And it’s made this remarkable turnaround by doubling down on, of all things, its derivatives holdings. Which happily accords with Mike Mayo’s suspicions that there’s something fishy about the whole thing.

In 2009, Citibank, Citigroup’s main banking subsidiary, had $32 trillion in derivatives, according to regulatory filings. That figure more than doubled, to $70 trillion, in the third quarter of 2014.

“It’s a little bit of a head scratcher,” Mike Mayo, a bank analyst at the brokerage and investment group CLSA, said. “Why is this the best use of Citi’s capital?”

Citigroup’s Roaring Revival on Wall Street [DealBook]


Dick Parsons Actually Gives Mike Mayo What He Wants

Is Mike Mayo the most powerful man on Wall Street, able to bend CEOs and bank chairmen to his will with the greatest of ease? If you'd asked us days ago we would have said "Well he does have a varsity analyst jacket but eh." Today? The answer is we have no idea but Dick Parsons is certainly helping make that case by not only complying with the demands of Mayo but doing so on his specified time schedule. [WSJ, Earlier: “I think that Parsons should leave in the next two weeks,” said Mayo on Feb. 23]