Citigroup Credit Losses Rising Rapidly, Goldman Says

bloomberg.com:

April 20 (Bloomberg) -- Citigroup Inc.'s credit losses are growing at a "rapid rate," undermining Chief Executive Officer Vikram Pandit's efforts to stabilize the U.S. bank, according to Goldman Sachs Group Inc.

While Citigroup posted first-quarter net income of $1.6 billion last week, the New York-based bank suffered an "underlying" loss of 38 cents a share, Richard Ramsden, a Goldman Sachs analyst, wrote in a research note dated yesterday. He repeated a "sell" rating on the stock.

Read the whole story: bloomberg.com

Comments

[WindySailor]

09:28 AM on 04/21/2009

[Sorry but I had inadvertantly posted the following comment to the wrong article.]

I hold no esteem for Citi. But I look at any pronouncement by Goldman Sachs with extreme skepticism. I worry that the financial meltdown has a deep conspiracy underlying it, at whose center Goldman Sachs is squarely lurking, in league with enablers like Hank Paulsen and others of influence.

Suppose that a scheme had been concocted to fundamentally reshape the international banking community. Its goal - to promote a single bank in each of the G20 nations to the standing of a quasi-national "superbank". It would get there my undermining its direct competitors and leave them in hock to (or ownership by) the federal treasury. Surviving lesser banks would be in unbreakable fealty to the regional superbanks. Eventually the superbanks would join forces to launch a world bank. And the center of power is sealed.

Sounds far-fetched perhaps? But maybe not so much. Trust no one.

[Carolab]

12:15 AM on 04/21/2009

The hybrid bank entities then go to the government and ask for billions of bail out money. Guess what? They are not using the bailout money to lend. These entities keep the bailouts and form an insider trading circle to manipulate the market (the good old boys network is still intact). Not possible?

Notice how the government doesn't ask where the money is going after its dole out? Accounting rules (GAAP) allow these entities to show money is still in the books, but not how it is used. Since nobody has any idea how much the bank's derivatives and CDOs are worth, if these hybrid entities lose money to market gambling, they go back to Washington and ask for more bailouts, claiming the CDOs and derivatives are ki-lling them.

You will only see strong manipulation with Dow Jones Industrial Average, because there are only 30 stocks to manipulate, and 300 billion goes a long way compared to say, S&P 500.

tThe Plunge Protection Team (PPT) pulls the strings by providing ammo (money) through government bailouts. This forms plausible deniability if PPT was found out to be manipulating the market; finger pointing would logically point to Goldman, JP Morgan, et al.

http://ezinearticles.com/?Market-Manipulations-Come-From-Goldman,-Citi,-BoA,-JP-Morgan-Investment-Divisions&id=1764549

MARKET MANIPULATIONS Come from Goldman, Citi, BofA and JP Morgan Investment Divisions

http://investment-blog.net/market-manipulations-come-from-goldman-citi-boa-jp-morgan-investment-divisions/

[PhilipTaylor]

08:09 PM on 04/20/2009

What the Wall Street TRICK on this ONE? Some Leveraged Shorting Perhaps?

Another Wall Street Day another 16,000,000% annualized gain for the Banksters and Hedgsters!

That is what happens when you FAKE your Profits!

The ones that "KNOW the FAKE EARNINGS are Coming" make a quick 25+% in a few Days (annualized that is 16,000,000% per Year) and SELL and the rest get the Heck Taken out of them!

It is another FORM of "INSIDER TRADING" and the Banksters WIN AGAIN at the small Investors Expense!

It is a high speed version of what the BANKSTERS did with Derivatives and Credit Default Swaps! That was Manufactured "Insider Trading" Also!

[PhilipTaylor]

08:15 PM on 04/20/2009

You see Goldman buys the Leveraged Shorts or Puts the Day before they put out this sure to HURT Analysts Note and Goldman Rakes in another 16,000,000% annualized Gain and Citigroup needs more Bailout Money!

It is simply a game played everyday by the Banksters and Hedgsters and Americans Pay theme Billions!

Why would a Bankster or their Hedgsters be allowed to short a stock when the same Bankster is issuing Analyses on the same stock!

That is Blatant "INSIDER TRADING" and "CONFLICTS OF INTEREST?"

[Carolab]

01:05 AM on 04/21/2009

Right. This is JUST being done because BoA and Citi plan to convert the shares to common and sell them back to "us" at a loss -- they are manipulating the stock down on purpose just for this "exchange". We have to buy back the stock at a higher price while they buy their stock at the lower price.

http://baselinescenario.com/2009/02/26/convertible-preferred-stock-capital-assistance-program/

[Icantbelieveher]

05:56 PM on 04/20/2009

They cut their nose to spite their face -- they raise the interest rate on credit cards, then when they make it so unaffordable that people can't make the payments, they whine and ask for taxpayers to bail them out!

They raised my mother's rate from 4.99% to 27% in one month, and when the payment went so high she couldn't pay it, she went bankrupt! They didn't want to work with her until she stopped making the payments, then they called her and said they would lower the rate to what she could afford!

I hate Citi!

[Artos]

05:51 PM on 04/20/2009

Didn't Citigroup just rave about their profits last week? Wow things really happen fast in the world of finance. I say let em all rot. I'm sick of our government saving their bacons. Let em rot and then lock em up.

[freelyb]

05:37 PM on 04/20/2009

This probably won't be as effective in deflecting blame as Goldman would like. But, hey, they gotta do something...

[mizerello]

02:49 PM on 04/20/2009

And guess who will buy Citi after they succeed in destroying it...Goldman Sachs...

[lizr]

03:58 PM on 04/20/2009

yeah, no kidding. these guys should all go to jail for stock manipulation- and profitting from it.

will they?

no way.

[sposton]

01:23 PM on 04/20/2009

Don't worry. Within a month CITI will post a profit. ;-)

[dadw5boys]

12:35 PM on 04/20/2009

GOLDMAN SHOULD HAVE FAILED 8 MONTHS AGO IS GIVING ADVICE ON ANOTHER STOCK ????

Pot meet Kettle !!!!!!

.

[EinChicago]

01:21 PM on 04/20/2009

GS is once again blatently trying to manipulate the market. Google Ramsden, and you will see he is the guy who also issued the note which caused the panic in early march---from which I am sure his short positions did very nicely.

The legitimacy of Market reaction based on Ramsden's note is absurd--it's rather like trusting Hannibal Lector and jumping in his car to get away from Ted Bundy.

[lizr]

03:58 PM on 04/20/2009

RAMSDEN SHOULD BE IN JAIL.

[EinChicago]

12:28 PM on 04/20/2009

Ramsden is also teh guy who pushed hard in early march on Citi to bring their price down when it was time to cover shorts.


It's amazing how quickly the otherwise bank hating posters will agree with one of those bankers if he happens to tweak their rage enough.

Ramsden is trying to short cover again. End of story.

[talismn 25]

02:02 PM on 04/20/2009

At what point can it possible be considered criminal for this ongoing manipulation with short trading?

[BigAl72]

12:22 PM on 04/20/2009

It is time to start banking with your small local banks.

[Viper]

04:07 PM on 04/20/2009

Your small banks are now entering a world of trouble, What bails BiofA out is that it has other sources of revenue to make up for what now is the bigger probloem areas and the life blood of small banks... which dont give business loans of any size or offer the servicess/international banking that even small businesses require... the ones that hirer most Americans.


regards

[freelyb]

05:33 PM on 04/20/2009

Viper,

I have to ask what industry you represent. My advanced degree and livelihood are in psychology, so I know little to nothing about the deeper dynamics of economics. What I do know is that untrustworthy people are statistically very, very unlikely to change over time. Those are the numbers I'm betting on here.