Maria B. interviewed Pandit today and showed it again on Closing Bell. He said they were managing tightly their exposure in Europse. The future of the Euro is important question mark. Europe's FINL systems is 2.5 times size of US FINL system. Shedding assets. "We have done alot of restructuring". Cut back in trading business and capital market business. Maria said we are all expecting a downgrade from Moody's. Pandit said he's ready for it if Moody's does the downgrade. Makes financing of debt more expensive. Citi has $900B in deposits. Citi has more liquidity than Basel requires. Revenue by region - North America was only 43%. CitiHolding use to be 40% of assets, now only 10%. Maria showed a video clip of the Prince saying he expects dividends in 2012. Maria asked "Will he get his dividend?" Pandit said he is focused on 2013 - work with the Fed to return capital to shareholders. "Certainly not sooner than 2013". Emerging markets are still growing, but slower than a few quarters back. China & others impacted by European uncertainty. Middle class in these countries still rising. Citi is banking emerging markets and multinationals. Focused on rise in global trade. "There is not another bank that can do this as well as we can for our clients". Maria "How do you take this bank to the next level?" Pandit "We have a much stronger financial system in the US"... 200th anniversay of Citi, strongest balance sheet ever! "We're going to be the digital bank going forward" HOP
Banks earn more but it is not time to increase interest rates in a moment when the bad credit is more then the possible good credit. First stabilize the economy, the emploiment then rise the interests.
Why Moody's is grading now banks in this moment? What it helps ti the economny? I mean, OK, but is it the right moment to do so. There were Basel III, stress tests, new rules, Europe, etc. Why to downgrade banks just now? To distroy the small shareholders and to help shorts, big hedge funds and other insiders? To increase bank costs? To contribute to cut more jobs? I don't know.
Moody's cut ratings on a bunch of European banks late last week, and UK is next, followed by US. All the big US banks (C, JPM, BAC, GS, MS) are likely to be impacted. The other rating agencies (S&P, Fitch) cut their ratings on some of the largest banks late last year, but not to the extent that Moody's is considering. FOr example, MS may be cut up to three notches. With all the problems with the Spanish banks, there is no way US-based international banks could escape. The stock price of C already reflects the downgrade - it's been expected for months. HOP