cohenbarryj

Top 15 Creditors to New Century

Why does an investor want to own a company whose senior leadership "manages by firing." They let loose 15,000 people so 1 or 2 guys can keep their jobs (Chuck Prince for example). Now I don't work for the company nor does any family or friends so this isn't spilled milk. They can't do a deal in the U.S. so they are forced to look at crap like ABN AMRO. The simple fact is they got a $1 bln in operating leverage by firing 15K people so they can buy time for the FED to cut rates so revenue improve. The leadership is inarticulate, inaccurate, a bit decitful, and certainly inaffectual.

Citibank: Benchmarking Mortgage and Subprime Risk

Everyone make this more difficult then it needs to be. 1) about 2/3 of their funding is "wholesale" in nature and with global yield curves flat to inverted, going to drag down revenue yields. So you have a call option on the Fed. 2) A significant portion of earnings is associated with the U.S. consumer lending operations, well we all know what is happening in those segments. Putting aside some funny accounting for the moment. 3) Less then effective sr. management only compounded by years of attrition in quality management positions. Why make it harder one ourselves. Own it when you have a CHANGE in FED policy, end of story......