In the news Citigroup is still present with topics that recall te $45bn injection of US Treasury capital and the $306bn loan-loss guarantee, the biggest government support provided to any Wall Street company.
the first news is:
Ex-chairman of Citigroup to explain part in bank crisis
Charles 'Chuck' Prince, the former chairman of Citigroup, is to answer questions on the bank's near-downfall for the first time since the end of the financial crisis.
The second news is that Citigroup will raise base salaries by as much as 50 percent to help compensate for a reduction in annual bonuses. The biggest increases will go to investment bankers and traders (Citigroup Plans to Raise Salaries by as Much as 50%).
Finally, Simon Johnson, professor at MIT’s Sloan School of Business and author of 13 Bankers, says it's not only unfair, but that the bailouts Geithner and others engineered for the nation's biggest banks are dangerous. "They (the banks) really feel they're completely invulnerable," he tells Aaron and Henry in the accompanying clip. The prevailing thought on Wall Street is, "if things go badly it’s not your problem," he says (Simon Johnson: Big Banks Are Blackmailing the Country).
Not exactly positive news for the image and the visibility of this big bank. Prices, however, are doing pretty well regardless of news and criticism. at least so far. We are very far from the $55 of 2007, but if you think that the low one year ago was at about $1, the price of $4.18 is not bad at all. It is a pretty impressive performance.
In the figure you can see the volatile Citigroup (in red) compared to SPY (in blue). Pretty bumpy ride... Note that the high at the end of August 2009 at $5.43 is far, however, from the present $ 4.18. I am not sure it will be easy for C to see this level again soon, although during these first months of 2010, C has done well going up more than 22% vs 9% of XLF. At the daily level, %b has developed a slight negative divergence. But who cares of divergences these days?
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