Friday, February 27, 2009

Investors are also worried that Citigroup’s performance could suffer.

The title is a quote from an article in the NY Times announcing that we will be boosting our ownership of Citicorp from 8 to 36%. Here's a company that has lost $27.7 billion in the last year and investors are worried that things could get worse? We've given them $45 billion already, guaranteed billions more in bad loans and still the stock tanks. Government ownership could make things worse?

Now is the time to try Susan Woodward and Robert Hall's idea of good bank/bad bank. Even though this infusion will make some changes in the board, Pandit should be dropped as well.

No comments: