$3 Citigroup Still Needs to Be Broken Up
by Joe Weisenthal
From The Business Insider, June 23, 2009:
It's amazing. For all the support the government has provided Citigroup, its shares still languish at $3.
On the bright side, that's about 3x its levels back in March. But it's still off about 85% from its year highs, which itself is well off the stock's all-time highs.
The bottom line is that investors don't think there's any future here. And yet the bank is still a huge source of systemic risk, and the government would again be required to bail it out if it got itself into trouble (or if the company burns through the current bailout).
Unfortunately, CEO Viram Pandit is not interested in slimming down. He's talking about growing internationally, beating more on emerging markets. Lovely. Oh, and he can look across the pond, where the CEO of almost-fully-nationalized RBS just got a 9.6 million GBP bonus. Yeah, nationalized banks can give huge bonuses too.
Basically, there's nothing right with this bank. It's got the wrong CEO, the wrong strategy, and it's got no appeal to investors, while still carrying monster risk for us the taxpayer. It's time to end this one.