Citibank: Blames Short -Selling

Friday, November 21, 2008

I recently asked the question:  Citibank: What is the problem?  Now we know:  it is the short-sellers.  Citibank has problems to solve...blaming short-sellers for the collapse in stock price is missing the point. Why is Citi concerned about its stock price? It should be spending its time and energy working through its problems and re-building its franchise and credibility. I would say they have too many people on staff...clearly someone has time to waste worrying about short-sellers...

The way to beat short-sellers is fixing your business and producing results and creating confidence. It seems management is more concerned with their personal holdings than with the franchise with which they have been entrusted.  Citi is a 'Bank' and their concerns should be for their depositors first and then shareholders.

This is what you get when you hand over the reins to hedge fund mangers instead of Bankers.

Even if Citi stock were to get back to $1, I would not see, I do not believe that Citi is solvent and I have no confidence in management.  Here is an appropriate epitaph:

The Doors The End

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