Star analyst whacks Citi again

Please do not slay the messenger.My opinion, the housing boom carried the recent economy.Some capitalists became more creative by packaging refuse in shiny wrappers to market to the unsuspecting? Will the upper echelon leadership, who engineered this strategy, be financially devastated? Aren’t we always reminded that if it sounds to good to be true, then it probably is. These problems won’t disappear by burying them somewhere. Truth is often difficult to accept but reality will cause us to face it eventually. Markets will rebound. Maybe this is a buying signal? Good Luck.

I am very very close to people who work there, I have worked in a variety of Financial Services industries - when the company is this quiet….and belive me “silence is golden” this leans more to it being worse than better. Be honest already Mr. Pandit - say we are still looking into the books, say something, your silence rings louder than the reported write down. April 18th earnings on expiration Friday - Options and Volatility don’t lie……remember back in August a well known Wall Streeter went on record as having gone 5 bid for 500K and was hit…on this very stock back in the 90. The US economy needs help, the working middle class is struggling to make ends meet - but try their hardest to meet their debts versus throwing up the “BK white towel” are getting crushed on Food, Gas, retirement..and there very own job. Mr. Pandit you made your money….you where lucky enough to have sold your hedge fund for more money than most people will see in 15 life times…speak say something. Let this market bottom out already.

Mr. Elder, you can bet your bottom dollar I have issues with their past bonuses; call it jealously, or whatever you like, if you also think I’m “jealous” of a man rich from just robbing a jewelry store.

You totally miss the point. Thank God the borrowing binge is ended, and the dollar fades. Would you seriously argue that a $600 trade deficit is “healthy”? Or with a straight face argue that we only have that gap because those “nice people” really like to hold American dollars? Give me a break, the hold assets in American borrowers because they’ve been selling an addictive drug called easy credit, and to keep it easy, they’ve been tinkering with currency markets to artificially inflate the dollar for years.

Have you taken a look at GDP figures recently? Have you seen how quickly the manufacturing sector has rebounded after the dollar tanked a bit? Manufacturing is whether the money is, and no country that I know of ever borrowed their way to lasting prosperity. Of course, to your ilk, “this time is different,” just like it was with the internet bubble, and now the debt bubble. Get real, and take off your blinders . . .

Some of you,and some in the media seem to be enjoying the problems that the banks are dealing with.Part of this seems to be jealousy about past bonuses.This attitude is not smart.You seem to not realise that when the banks have trouble the whole economy suffers badly.As banks cut back on lending,you can say farewell to yr ability to borrow.And as companies ;small businesses;individuals(and even Ms.Whitney) are no longer lent to,their lifstyles will be severely cut back.Companies will not expand,consumers will have to cut back and unemployment will take off.That means that a lot of you who are so happily vicious in yr comments about banks will loose your jobs.Even Ms.Whitney may loose hers, as her employer cuts back,after all everyone knows that all she does is dis the banks.Do they really need to pay her inflated salary for that?They can have a parrot say it regularly,as that is all she does,and everyone will say…what a magical and star parrot that is !

All it takes to be tagged as a “star analyst” on wall Street these days is a well-funded PR machine!

Casting aside the hubris of ego. It is still a tiring exercise to watch as others get credit [because of well-oiled PR machines] for stories I broke months earlier. For example, CIBC banking analyst, Meredith Whitney, is currently the toast of Wall Street, for predicting the demise of the sub-prime market.

Loyal readers of the 10Q Detective blog, however, know that David J Phillips, in December 2005, first cautioned investors on the adverse affect to financial performance of sub-prime loan originations:

“HRB is counting on its mortgage origination unit to be a continuing strong driver of top-line growth. For the second half of fiscal year 2006, management believes that the Company can achieve funding volumes consistent with first-quarter levels of $10 billion to $11 billion per quarter resulting in full year origination growth of approximately 40 percent. HRB’s mortgage-centric reliance on the subprime mortgage market will be its EPS albatross: tighter credit requirements and higher borrowing rates will lead to smaller interest rate spreads on loan originations, lower average gains on whole loan sales, and reduced net margins on its loan portfolio.”

Best-
David J. Phillips, Publisher
http://www.10qdetective.blogspot.com

A KIPLINGER’S PERSONAL FINANCE & BUSINESSWEEK “MUST-READ” BLOG! A ‘SMART STOP’ Must by The Journal of Accountancy (March 200

Meredith, count yourself fortunate you made one call that worked. Mistaking luck for wisdom puts you at risk for being the next Elaine Garzarelli.

If this person is so confident, that she will have to cut her estimates for financials again in 2008, why doesn’t she adjust her estimates properly right now? Her statement implies that her current estimates are to high. In other words her current estimates are wrong. So who wants to follow an analyst who publishes new estimates for financials and at same time says they are wrong??

This lady is hardly a “star” analyst.Rather She seems to be a “one-trick” pony.She said the banks would be badly hit back in October,and that was obvious to everyone in August.She periodically repeats this with slightly different words,and this also is pretty obvious to anyone.The banks will continue to have a hard time in 2008.We don’t need to be told this,while pretending it is “new or insightful”.A true STAR analyst is one who can regularly pick the future star performers,not someone who like this lady merely continues stabbing an aleady wounded animal.Has she ever picked out and named future star performers in her recent career?

Mr Mayer, it appears that you want to execute the messenger. It’s not Ms. Whitney’s fault that the executives running the company have done a lousy job and allowed the company to be exposed to such a big risk. The warning signs have been there since early 2005 and some commentators have been predicting that the Real Estate party couldn’t last. The fault is with corporate executives who didn’t heed their advice. It’s no comfort to you but I’ve been on the losing side of bad corporate decisions in the past and it’s always the workers who take the hit. The top executives who are grossly overpaid for their “contributions” to the company usually get to bail out with a golden parachute while the rank and file go down with the plane. Bottom line is she’s been right so far and since when is telling the truth a crime? BTW in the article, her estimate was not the the “over the top worse case analysis” as you describe it; she’s been “spot on” as my British colleagues would say it.

…the bank is composed of the employees, analysts, bankers, executives and CEO…this debacle does not lie solely on the shoulders of the Big Kahuna. It’s like some Nazi officer in Dachau saying he was just following orders…you would think that someone along the line had the opportunity to say, ‘this isn’t right. and we shouldn’t do it.’ If it all turned out OK and the bank made a bunch of money on these investments, the stock goes up and Mr. Meyer is thrilled. Next time consider all of the consequences and speak up, if you smell a rat…..

Boo Hoo Mr. Mayer. You’re getting exactly what you deserve. Most likely you were at the overpaid banker’s trough for the past several years, collecting your fat bonuses (perhaps not $25M, but sizeable, I’m sure). You and your ilk should be run out of Wall Street between a line of angry shareholders utilizing their worthless share certificates as wet noodle clubs.

Take your medicine and shut up. A pity it couldn’t have come sooner . . .

These analyst’s hindsight is 20-20. Where was this insight 6 months ago?

Having a hard time tring to figure out who is the worst
Wal-Mart or the Credit card companies?they both like to screw the consumer.

I guess that means it’s time to buy a little more! Thanks Ms Whitney!

Thanks Meredith, you focker. Your over the top worse case analysis has really helped do some great things here at Citi. Sure Prince is out and got his $25M. However the rest of us are stuck hold a bag of worthless options, stock and 401K. Thanks for all your help. As you continue to pour gas on this fire, it’s the employees of the company that get burned. We get our 2 weeks per year and goodbye. Thanks again for all your help Meredith.