Wall Street Manna

An irreverent look at Wall Street

Thursday, December 13, 2007

Citigroup takes the SIV's

Vikram Pandit, Citigroup's CEO, was roundly panned by Wall Street yesterday as these analysts said it was just speaking in generalities. He took action today by putting $49 billion of SIV's on it's balance sheet. What will Wall Street say now?

They already predicted C would cut it's dividend to a 30 cent quarterly rate if the SIV's were put on it's balance sheet. It's easy to make worthless projections, when you don't expect it to happen. Now it happened, and the stock will bounce as the SIV uncertainty has been removed.

Pandit understands trading, and he understands Wall Street. Wall Street is more forgiving than most churches, and most baseball investigators: You fess up, and Wall Street cuts you some slack. Today, Citigroup caught some slack.

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