C.elder

Will Citigroup Regain Its Lost Luster?

Why so much vitriol aimed at Citi?It has the same problems of the other banks,and many of those have worse ones.Does anyone seriously believe that the business model of Goldman or Morgan Stanley is more solid than Citi's?And BAC that overpaid for toxic Countrywide just as it went into the tank,and then repeated the same error with Merrill-is that the sign of great management?And JPM that bought the problems of Bear Stearns and WAMU when these should have been allowed to die?And Wells that bought Wachovia whose funny mortgages exceed the capital of Wells-is that a great deal ,by a great management who now have a multi-billion lawsuit from Citi hanging over them for the next few years?Anyone noticed that Berkshire Hathaway's stock has dropped by 40% (just like Citi)in the last couple of months?Yet no one is clamouring for Mr.Buffet's head!During this time,Citi has raised lots of capital,sold off businesses,reduced expenses (more than any other bank),reduced its balance sheet(especially in the risky categories),helped millions of americans reschedule their mortgages so they won't be tossed out into the street etc.Yet no one pays attention to the good things done.There is no magic wand-and certainly no other bank has one either.2008 won't be pretty for any bank.But we all need Citi.If Citi does not survive,then no other bank will,as they are all linked together -as the Treasury learned too late with Lehman.So the rabble calling for Wall St. to be punished got its wish with the collapse of Lehman.And since then the catastrophic aftereffects have proved conclusively that allowing Lehman to fail was the mistake of the decade.We all have a lot more to gain from having a positive,supportive,at... to Citi and the others than in running them into the ground.