On Monday night, the Treasury Department released it's much-awaited plan to cut all the financial red tape and make Wall Street great again. It was all pretty familiar-sounding, given that Jamie Dimon basically wrote the first draft, so one could be forgiven for snoozing on it. Moreover, for the likes of Citigroup CFO John Gerspach, there were more pressing matters:
“LeBron, Treasury report. LeBron, Treasury report. I don’t know,” said Gerspach, discussing the choice of watching the Cleveland Cavaliers’ LeBron James compete or plowing through the voluminous release. “I’ve got to tell you, LeBron won. Although he did lose the game.”
Let's leave aside all Cavs/Warriors partisanship here. One team is clearly better. We don't need to tell you which. And no matter how hard the inferior team tried, how disadvantaged by circumstance they might have been, or how skilled LeBron himself might be, a loser is a loser.
Of course, one is still free to prefer the loser to the winner, and even say that the former is actually the latter! Indeed, this is a probably a good lesson for Citi investors. A putative powerhouse that perennially struggles to edge out its rivals – it still trades at the lowest price-to-book ratio among the majors – Citi might be the ideal bank stock for those who aren't afraid of an L.