Geithner: Hot Child and the CITI…
Will he or won’t he?
Tim Geithner, the future Treasury Secretary, is currently the head regulator of CITI, and he is likely to have a substantial role this weekend in helping to formulate the future of that company.
CITI’s Board met today in an attempt to come to a solution for the markets rough and tumble treatment of its stock. Best quote of the day, Jeff Macke on Fast Money compares Vikram Pandit, CITI CEO, comments today promising no pieces of the company would be sold, to Moe Green telling the Corleones there is no room for them in Vegas. It has about as much effect.
From the Guardian: …
But market-watchers will hone in on Citigroup over the weekend for any developments as to the future of the bank, the second-largest in the United States by assets.
Citigroup’s board is meeting Friday to discuss the bank’s options, according to a person familiar with the matter. The bank could sell parts of the company, or merge with another institution….
The meeting came amid reports that directors were looking to replace Citigroup’s chief executive, Vikram Pandit, and Citigroup was cutting additional staff in Japan.
“Hopefully it’ll be a positive news story, whether it be a sale of the company, a restructuring, a new management — the market will take anything at this point,” said Joe Saluzzi, co-manager of trading at Themis Trading in Chatham, New Jersey.
“That would probably continue a rally on Monday morning. If we get nothing out of Citibank, we have a little bit of a problem on Monday morning.”
Citigroup’s shares shed 20 percent on Friday to close at $3.77, for a loss of around 60 percent for the week. In after-hours trade on Friday Citi shares rose 6.6 percent…..
We should have a move before Monday.