If the invest $700B in the safest investment there is, the US Long Bond at 4.5% yield, they will profit $31.5 Billion per year.
Believe me, they can get a better return for their money.
Get the picture? With the economy coming back, a steepening yield curve, near zero Fed Funds rate -Citi and the banking industry will be PRINTING money for the next decade.
Long and strong. yesssssssssssssssssssssssssssssssssssssss
1) Go to Yahoo finance --- C --- Key Statistics
2) The guy today at CNBC (see Briefing at 16:45) predicted for C $0.8 at some point of this cycle which brings share price $8.50.
Taking earnings $1.08 we get as estimation $11.50. Same as mad Cramer by the way, but being wrong he sometimes right
One multi-billion dollar non-core asset sale and a share buy back with it.
Will be extremely proactive for this stock and Citi - It is a win - win.
They can very well make this strategic move - realistically.
If Citi is actually shareholder oriented, they have tremendous financial flexibility to create enormous value. If they RS or something destructive to share value I'll be out and so will most current investors - forever. At this point there's no reason not to trust Pandit, because he's doing a very good job restructuring the business. It's more a matter of executive attitude regarding shareholder value than anything. Fortunately greed should help motivate these guys to reward themselves handsomely and thus all stock holders.