Mr. Pandit is expected to make an announcement tomorrow, and a buyback is the most likely statement.
From CNBC - "it is our understanding that C would be free of TARP restrictions following the successful completion of the secondary. This would allow C to apply to the Fed to pursue establishing a dividend and/or buying back shares."
Certainly we would expect that Citi would've arranged verification of pre-approval before the Dec. 17 deadline, and this appears to be the case. Pandit is a genius!
I am sure that Pandit will handle the buyback/Reverse Split question that wil surely come up tomorrow regarding share count reduction in a diplomatic manner - not answering to the point. Same with respect to dividends - that they will reward shareholders at the appropriate moment.
He will instead say that earnings are going to be on track and Citi will be stronger going into 2011. Do not expect a patient who is recovering to run the marathon the very next day!! ...
bob_wills <<Do not expect a patient who is recovering to run the marathon the very next day!! ...>>
He'll run it if he's got bionic legs. All it will take is a committment to buy back shares. Let's say Pandit announces that Citi will buy back 1billion shares each of the next 4 quarters in incriments. Simple and easy to do. First thing that happens is the stock jumps to 6.00 on 1billion buy back tomorrow. Next, institutions jump in and you are at 10.00 a share by Christmas. Simple.