The chatter this morning is that the board at Citigroup is getting “impatient” with Pandit. I guess they will be real “annoyed” when the stock hits $3. This is a true case study about how Wall St. continues to go back to the well of incompetence. Years ago Pandit left Citi, started a really big hedge fund, imploded it, sold it back to Citi and then gets offered the top job back at the bank. Great work if you can get it. I’m not surprised, but it truly is disgraceful in my eyes. Big Vik bought a boatload of C just north of $10 a while back when the pundits called their 50th and “final” bottom. Ouch. So much for following “smart money.” I never subscribed to the strategy of watching what insiders are doing. Too many moving parts that include tax maneuvering etc..and frankly insiders know nothing about how the markets work.
A wonderful “tell” that validates and strengthens my constant drone that our banks will need much more capital going forward, is what is going on with HSBC this morning overseas. They “think” they may need another $30 billion. Morgan is out saying “they weren’t as well capitalized as they thought”, they may now cut their dividend by 50%. Let’s face it, banks aren’t buys again until dividends are completely “eliminated”, not “cut”. Please give me a break. How can these entities continue to be so arrogant? Eliminate all dividends I say, and do it now, otherwise they are just prolonging the inevitable and jerking the public around. In the meantime I’m staying short up the wazoo.