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Citigroup Inc. (C)

  • Yesterday, 5:10 AM
    • Argentina's securities regulator has suspended Citibank Argentina from conducting local market operations due to Citigroup's (NYSE:C) deal with holdout creditors who are embroiled in a legal battle with the South American nation.
    • Economy Minister Axel Kicillof said on Wednesday the accord, in which Judge Thomas Griesa allowed the bank to process two debt payments in order to facilitate a smooth exit from its Argentine custodian business, violated local laws.
    • Previously: New court order allows Citi to process Argentine bond payments (Mar. 23 2015)
    | 1 Comment
  • Fri, Mar. 27, 3:28 AM
    • Despite its revenues falling 6%, JPMorgan (NYSE:JPM) retained its crown as the top performing investment bank in 2014, according to industry analytics firm Coalition.
    • JPMorgan reaped $22B from investment banking last year, compared with $23.3B in 2013.
    • Other U.S. banks also continued to dominate top spots, with Goldman Sachs (NYSE:GS) coming second overall across investment banking, and Citigroup (NYSE:C) and BofA (NYSE:BAC) sharing third place with Deutsche Bank (NYSE:DB).
  • Thu, Mar. 26, 4:37 PM
    • The big banks have had a rough start to the year, but surging trading volume in bonds, currencies, and commodities in Q1 could make for pleasant surprises when the lenders report quarterly results next month, writes John Carney.
    • The average daily trading volume across all U.S. bonds was up 10.6% Y/Y through the end of February, according to Sifma, with trading in corporate bonds up 18.1%, driven by a big rise in issuance. Trading in Fannie, Freddie, and Ginnie MBS was up 35.3% from a year ago.
    • Goldman Sachs (NYSE:GS) could be a particular beneficiary, as about 25% of its revenue is generated by FICC, and Credit Suisse sees the bank posting its first year-over-year increase in that unit's revenue since 2009.
    • Others of interest: Morgan Stanley (NYSE:MS), Bank of America (NYSE:BAC), Citigroup (NYSE:C), and JPMorgan (NYSE:JPM).
  • Mon, Mar. 23, 8:58 AM
    • In what could be a big boon for overseas banks doing business in China, Beijing is mulling sweeping changes for the securities industry which would include allowing foreign banks controlling stakes in their local joint ventures, reports Bloomberg.
    • The looser restrictions would let players like Goldman Sachs (NYSE:GS), JPMorgan (NYSE:JPM), Morgan Stanley (NYSE:MS), Credit Suisse (NYSE:CS), Deutsche Bank (NYSE:DB), and Citigroup (NYSE:C) compete more effectively with dominant incumbents like Citic Securities.
    • Current rules approved in 2012 allow overseas banks to just 49% ownership of securities firms. Prior to that, the limit was 33%. The above-listed banks have all entered the market since 2007.
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  • Mon, Mar. 23, 2:21 AM
    • In the latest twist to the showdown between Argentina and Citigroup (NYSE:C), a U.S. federal court has agreed to allow Citi to make interest payments to investors holding $2.3B of Argentine bonds at the end of this month and on June 30.
    • Previously, U.S. Judge Thomas Griesa ruled that Argentina must settle with its holdout hedge funds before it continues paying interest to the majority of investors who accepted debt writedowns following the country's $100B default in 2002.
    • Previously: Citigroup, Argentina face off; Citi slashes CEO pay (Mar. 19 2015)
  • Thu, Mar. 19, 12:21 PM
    • Citigroup (C -2.6%) last month disclosed CEO Michael Corbat's total pay of $13M for 2014, down from $14.5M the previous year. Behind the pay cut were the bank's failure to have its capital return plan approved by the Fed, and the fraud-related issues at Banamex, says the bank in its annual report.
    • 2015 is looking better as Citi passed the CCAR with ease and Banamex fades further into the past.
    • From the CEO's letter: "Citi is not the bank that entered, endured, or emerged from the financial crisis ... It's a vast understatement to say that we merely 'rebuilt' our capital position since the crisis. In fact, our capital strength now far exceeds even pre-crisis levels."
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  • Thu, Mar. 19, 7:50 AM
    • Citigroup (NYSE:C), Goldman Sachs (NYSE:GS), and UBS are among the large lenders facing millions in losses on energy loans made last year. The lenders intended to sell the paper, but have had difficulty doing so even after cutting prices.
    • "We've been pretty shy about dipping back into energy names," says a loan-portfolio manager at DoubleLine, summing up the industry attitude.
    • It's a sizable setback for Wall Street (not to mention energy companies whose financing has dried up), which has earned $31B in energy company-related fees over the last five years, according to Dealogic.
    • Shades of the mortgage crisis? Not even close, say investors, as banks at the end of the housing bubble held hundreds of billions of dollars of souring mortgages and corporate paper on their books.
    • Source: WSJ
  • Thu, Mar. 19, 2:17 AM
    • Citigroup (NYSE:C) says it will not appeal Judge Thomas Griesa's ruling which barred it from processing Argentine bond payments if he helps it exit its custody business in the country.
    • This sets up a showdown with Argentina which earlier declared it would not allow the bank to walk away from the business.
    • Separately, Citi cut chief executive Michael Corbat's annual compensation by 10.3% to $13M in 2014, citing high legal expenses and the bank's failure to win regulatory approval for its capital plan last year.
    • Previously: Citigroup blocked from making Argentine bond payments (Mar. 13 2015)
  • Wed, Mar. 18, 2:41 PM
  • Tue, Mar. 17, 3:03 PM
    • If there's a better growth industry out there than legal work for the big banks, we haven't heard about it. In another of a long line of settlements over any number of issues, Citigroup (C +0.3%) and Barclays (BCS -1%) are soon expected to come to terms with private investors over forex manipulation charges, reports the WSJ.
    • According to sources, the two are expected to pay as much as $800M combined - more than double the amount extracted from JPMorgan or UBS in a similar matter.
    • Naturally, there will be plenty more to come as Citi, Barclays, and all the others continue to face probes from the DOJ and other regulators, with the DOJ pressing for criminal guilty pleas.
    | 1 Comment
  • Tue, Mar. 17, 11:10 AM
    • A possible harbinger of things to come next month when the big banks report Q1 earnings, profits at Jefferies plunged in FQ1 (ended Feb. 28), with FICC, capital markets, and investment banking particularly weak.
    • Previously: Poor results at Jefferies sinks Leucadia (March 17)
    • Jefferies parent Leucadia is lower by 3.7%. Goldman Sachs (GS -1.1%), Morgan Stanley (MS -0.9%), JPMorgan (JPM -1.2%), Citigroup (C -0.1%), Bank of America (BAC -0.8%).
  • Fri, Mar. 13, 4:09 PM
    • It's looking like $1B is the price the DOJ wants from banks to make the forex manipulation probe go away, according to Bloomberg. Banks, however, are finally starting to feel their oats and pushing back a bit more than in the mortgage probes - the final penalty could be lower, according to sources.
    • Among the lenders discussing settlements: Barclays (NYSE:BCS), Citigroup (NYSE:C), JPMorgan (NYSE:JPM), RBS, and UBS. The government is also readying cases against individuals.
    • In the global investigations, banks have already agreed to pay regulators about $4.3B.
  • Fri, Mar. 13, 2:02 AM
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  • Thu, Mar. 12, 12:47 PM
    • Citigroup's (C +2.7%) $7.8B in buybacks was 10% higher than estimated by MKM analyst David Trone. Combined with the nickel dividend, that's total shareholder returns of $8.4B vs. his $7B expectation.
    • Bank of America (BAC -1%) - though given just conditional approval - is set for $4B in buybacks and a nickel dividend. That's a total return of $6.1B vs. Trone's $3.1B estimate. Trone notes the bank can proceed with its buyback prior to resubmitting plans.
    • JPMorgan's (JPM +1%) $6.4B buyback was shy of Trone's $7B estimate, but the 10% dividend increase was better than forecast. The total capital return of $12.9B vs. his $13.2B forecast is a "marginal negative."
    • The dividend hike to $0.65 at Goldman (GS +2.1%) beat Trone's expectation of $0.62. As for the buyback, Goldman's policy of not disclosing the amount remains in place.
    • Morgan Stanley's (MS +4.5%) capital return of $4.3B is more than double Trone's $1.9B estimate.
    • Source: Benzinga
  • Thu, Mar. 12, 8:07 AM
  • Wed, Mar. 11, 5:14 PM
    • Passing the CCAR by the widest margin of all the TBTF banks, Citigroup (NYSE:C) lifts its quarterly dividend to $0.05 per share from $0.01, and sets a buyback program of up to $7.8B through the end of 2016 Q2. The new annualized dividend yield is 0.38%.
    • Shares +3.3% after hours
    • Previously: Corbat likely keeping his job as Citi cruises through CCAR (March 11)
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Company Description
Citigroup Inc is a financial services holding company. It provides financial products and services, including consumer banking, credit cards, corporate and investment banking, securities brokerage and wealth management.
Sector: Financial
Country: United States