Nov 27, 2007

CIBC analyst reiterates "underweight" on Citigroup after $7.5 billion Abu Dhabi infusion

When we downgraded Citigroup shares at the beginning of the month, we stated that it needed to raise equity, sell assets, and cut its dividend in order to shore up its capital base. Now that it has raised $7.5 billion in equity, we wait for it to sell assets and cut its dividend.

~ Meredith Whitney, analyst, CIBC World Markets, "Citigroup gets $7.5 billion infusion from Abu Dhabi," MarketWatch, November 27, 2007

(Whitney, who received death threats after she recently downgraded her rating the bank, said she is now waiting for the other shoe to drop.)

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