Citi hasnt even entered the credit card phase of its problems. No other bank has as much exposure to both phases of the financial crises (subprime mortgage and the looming credit card debt crisis). As unemployment and inflation increase, so does credit card use for non-discretionary spending (gas & groceries). If you cant pay cash for that, whats the odds you can pay the credit card bill? May be some short term trades but i wouldnt invest long on this company for at least several years.
C has incresed reserves by alomst 8 billions over the last 3 quaters. They have experienced some increses in credit card defaults. However, C has incresed loss reserves by a huge amount over the last 2-3 quaters. Loss resevers are in fact much higher than BAC.