Nov 3, 2007

Ted Wolff: "I don't think Citi is broken"

I don't think Citi is broken. The real issue is what's on the balance sheet.

[Although an analyst this week suggested that Citigroup should slash its dividend to boost its capital, Mr. Wolff said there were other ways to address the bank's capital adequacy, such as selling its 80% stake in Student Loan Corp. or stakes in some foreign investments.]

They have plenty of assets that they can sell that would have no impact on the long-term performance of the bank and would take worry out of the market. Just by shrinking the balance sheet they would give shareholders comfort.

~ Ted Wolff, executive at Solaris Asset Management, "Citigroup CEO Plans to ResignAs Losses Grow," The Wall Street Journal, November 3, 2007, by Robin Sidel, Monica Langley and Gregory Zuckerman

(Solaris Asset Management is a New York investment manager that has more than $1.5 billion in assets and would consider buying Citigroup stock if it gets somewhat cheaper.)

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