Comments on: Citigroup’s horrible conference call http://blogs.reuters.com/felix-salmon/2009/04/17/citigroups-horrible-conference-call/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: Alexander Dar http://blogs.reuters.com/felix-salmon/2009/04/17/citigroups-horrible-conference-call/comment-page-1/#comment-606 Mon, 20 Apr 2009 14:58:46 +0000 http://blogs.reuters.com/felix-salmon/2009/04/17/citigroups-horrible-conference-call/#comment-606 You are right, he was very cryptic in his presentation, but he gave us some interesting information regarding the conversion of preferred shares to common. He personaly took credit for moving the conversion day to after the stress test result will come out. Add the fact that only 4.4 billion new shares were registered with the SEC. This tells me that stress test result will reveal how much Citi will need to raise capitol/ convert preferred to common to comply with stress test. Citi feels confident that 4.4 billion share conversion, plus the sale of the japanese unit will raise enough capital to comply. There-by limiting dilution of their common. This limited convertion might put a squeeze on Arb players, as there won’t be enough shares converted to cover the huge short position. Also the conversion of $3.25 a share is an illusion. Preferred shares are carried as debt under liabilities. If you reduce $3.25 from liabilities and in turn add it to assets/stockholders equity (conversion), the net gain for every share converted is $6.50 a share. 4.4 billion shares converted from preferred to common has a net gain on tangible assets of $28.6 billion, add the $6 billion from japanese sale and your your balance sheet improves by almost $35 billion.

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By: Neville http://blogs.reuters.com/felix-salmon/2009/04/17/citigroups-horrible-conference-call/comment-page-1/#comment-584 Sun, 19 Apr 2009 22:23:10 +0000 http://blogs.reuters.com/felix-salmon/2009/04/17/citigroups-horrible-conference-call/#comment-584 The reason Gary Crittenden was replaced in this role is not hard to discern. He’s a straight arrow, and would not have been willing to obfuscate on this scale.

As soon as it became clear internally that this quarter’s reporting was going to have to be based on handwaving like this it will have been obvious that Crittenden had to be shunted aside.

The exchange with Meredith Whitney is so absurd that you have to believe the only survival option Citicorp’s management could see was to crank up the fog machine and hope for the best.

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By: Andrew Franks http://blogs.reuters.com/felix-salmon/2009/04/17/citigroups-horrible-conference-call/comment-page-1/#comment-566 Sat, 18 Apr 2009 16:51:31 +0000 http://blogs.reuters.com/felix-salmon/2009/04/17/citigroups-horrible-conference-call/#comment-566 Who is this idiot? (Ned Kelly). I have an idea; let Citigroup crash, and put people like Kelly in Jail. Bless Meredith. You should share with her from here on in she will hear nothing but BS from Bankers. Why aren’t they in jail?

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By: eliot lew http://blogs.reuters.com/felix-salmon/2009/04/17/citigroups-horrible-conference-call/comment-page-1/#comment-551 Fri, 17 Apr 2009 22:27:41 +0000 http://blogs.reuters.com/felix-salmon/2009/04/17/citigroups-horrible-conference-call/#comment-551 Mayo and Whitney were set up as roadkilll this week by the likes of CNBC and the Gov’t tools who helped direct the impressive earnings season for all of the big banks. The B of A and Wells earnings calls should be an interesting equivalent to Citi’s. None of this bullish banking sentiment makes sense in view of the Real World, even looking past the next 6 months.

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