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Citi Stock Slides Following Weak Results Despite Accounting Gimmickry

Tyler Durden's picture





 

Citi stock sliding (and below the  $5 "psychological barrier") following poor earnings which miss EPS big, coming at $0.04 on expectations of $0.08. Q4 revenue USD 18.37 billion vs. Exp. USD 20.36 billion.  Tier 1 common ratio of 10.7% at quarter end. Tier 1 capital ratio 12.9% at quarter end. Company says provision for credit losses and for benefits and claims declined USD 25.7bln, the provision for credit losses and for benefits and claims declined by USD 25.7bln for FY 2010 to USD 26.0bln, and the allowance for loan losses was USD 40.7bln at quarter end. According to the company the economic environment 'remains challenging.' And all this happens even as the FASB continues to give banks a green light to pull numbers out of thin air.

Full press release - link.

 


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Tue, 01/18/2011 - 09:16 | Link to Comment TooBearish
TooBearish's picture

Massive wiff - buy em!

Tue, 01/18/2011 - 10:00 | Link to Comment 66Sexy
66Sexy's picture

This may be a surprise to Wall Street, but inflation and high oil prices are NOT good for stocks.

Not because of any fundamental reasons; such as rising interest rates, higher corporate costs, higher consumer pass-through costs....

but because it means there may not be a QE3.

 

 

Tue, 01/18/2011 - 10:11 | Link to Comment Dolar in a vortex
Dolar in a vortex's picture

Whatever happened to the requirement to pre-disclose a material miss?

I work for a small company and we take the rules seriously.

Tue, 01/18/2011 - 09:17 | Link to Comment Oh regional Indian
Oh regional Indian's picture

Citibank of Fraud. With an Indian at the head. 

You should see their loan recovery crews in India, where the law is not really a recourse at all. Brutal. Their mafia fist does not sit well in the velvet glove.

ORI

http://aadivaahan.wordpress.com

Tue, 01/18/2011 - 09:26 | Link to Comment Sudden Debt
Sudden Debt's picture

 

You do realise that if the TAXI community reads your post you'll never be able to catch a cab IN YOUR LIFE!!

 

Tue, 01/18/2011 - 11:03 | Link to Comment Oh regional Indian
Oh regional Indian's picture

In NY NY you mean? Thank god I don't live there.

ORI

Tue, 01/18/2011 - 09:19 | Link to Comment Dick Darlington
Dick Darlington's picture

Calling all units, we need a bail out immediately.

Tue, 01/18/2011 - 09:19 | Link to Comment gold mining ceo...
gold mining ceos are idiots's picture

Sooooo...Citi rallied 30% in Q4 to miss earnings by a mile. But I thought markets were forward looking? Joe Kernan is a liar!

Tue, 01/18/2011 - 09:23 | Link to Comment EscapeKey
EscapeKey's picture

I'm just surprised it's not "priced in already". City down? Surelythatcan'tbeso

Tue, 01/18/2011 - 09:25 | Link to Comment Sudden Debt
Sudden Debt's picture

In 1h and 6 minutes that will ALL be priced in and it will rally again.

POMO previously know as PPT WILL SAVE THE DAY!!

 

Tue, 01/18/2011 - 09:58 | Link to Comment Ludwig Van
Ludwig Van's picture

 

"...will rally again."

Don't know. Options expire Friday and max pain is four.

 

Tue, 01/18/2011 - 09:19 | Link to Comment 101 years and c...
101 years and counting's picture

5+ million mortgages behind by at least 2 months....and banks are lowering their reserves....Mark to Fantasy Accounting is a great thing (for bankers' bonuses).

 

Tue, 01/18/2011 - 09:23 | Link to Comment whatz that smell
whatz that smell's picture

the bernank is singing: "fa la la la la la btfd fa la la la"

two things are certain in life: death and banker bonuses.

Tue, 01/18/2011 - 10:45 | Link to Comment cramers_tears
cramers_tears's picture

And according to the Bernankster...  this is the DIP!  Better Buy Now While You Can!!!  DJIA to 20K Alice! 

Tue, 01/18/2011 - 09:21 | Link to Comment scratch_and_sniff
scratch_and_sniff's picture

I hope the nazi slags explode...they turned me down for an interview because i wasn't good looking enough.

Tue, 01/18/2011 - 09:33 | Link to Comment Bigger Dickus
Bigger Dickus's picture

Lehman Brothers once turned me down for an interview because I called their HR people "a bunch of good-for-nothing cocksuckers". True story - Canary Wharf June 2007.

Tue, 01/18/2011 - 15:31 | Link to Comment scratch_and_sniff
scratch_and_sniff's picture

lol, everyone’s interactions with Lehman’s became surreal when they folded. They did a milk round presentation at my uni the year before it all kicked off and were only to eager to boast about they're superiority when it came to making loadsa money. The only question i remember any of the students asking that night was "are there any sleeping pods at Lehman?"...to which the reply came "we're working on it". -true story.

Tue, 01/18/2011 - 09:22 | Link to Comment Sudden Debt
Sudden Debt's picture

If they would have put the expectations at 0.0000001 EPS, the stock would be at 20$ right now...

 

DAMNED ANALYSTS!!! DAMNED MEDIA!!!

BOoooEEEEEE!!!

 

:)

 

 

Tue, 01/18/2011 - 09:25 | Link to Comment whatz that smell
whatz that smell's picture

i'd junk ya but i be laughing too hard!

Tue, 01/18/2011 - 09:22 | Link to Comment Harmonious_Diss...
Harmonious_Dissonance's picture

I hear it's vecoming popular to Max Out your Citi Card to buy a massive stack of Silver! Maybee buy all kinds of things, live it up! Then you quit paying them. TBTF will have much "accounting" troubles ahead, methinks

Tue, 01/18/2011 - 09:22 | Link to Comment Sudden Debt
Sudden Debt's picture

At least BAC is still sniffing Helium!

Tue, 01/18/2011 - 09:32 | Link to Comment EscapeKey
EscapeKey's picture

Dow futures still in the green, predictably. No doubt it's "expectation of inflation". It's the only thing which makes sense. We know it, traders know it, CEOs know it, and the sheeple will get slaughtered.

Ah, here we go. The daily piece of "great news" to justify a 200 point rally.

WASHINGTON (MarketWatch) -- Conditions for manufacturing in the New York region improved slightly in January from December, the New York Federal Reserve Bank said Tuesday. The bank's Empire State Manufacturing index rose to 11.9 in January from a revised 9.9 in December. Economists had forecast the index would rise to 13. Indexes for new orders, shipments and employment improved in January. Both the prices-paid and the prices-received indexes jumped in January. After a sharp decline in December, the index for inventories rose above zero. A gauge of future activity jumped to its highest level since early last year, suggesting that manufacturers expect conditions to improve over the next six months.

Tue, 01/18/2011 - 09:27 | Link to Comment Cdad
Cdad's picture

Jeff Harte of Sandlar O'Neil is twisting like a pretzel logic madman on the Blow Horn [CNBC] about how great things are at Citi as they miss the quarter by a country mile. 

I guess credibility is also now a thing of the past here in the new America, and no one seems to be worried about Average Joe EVER COMING BACK TO THE EQUITY MARKET as criminal syndicate Wall Street bankers just say, literally, anything.

What a joke.

Tue, 01/18/2011 - 09:28 | Link to Comment Bigger Dickus
Bigger Dickus's picture

If the S&P 500 closes green today I am gonna quit school and spend all my money on hookers and motorcycles. I have had it with this shit. You can't go long the market, you cant go short the fucker and trading fx is for masochists right now!

Tue, 01/18/2011 - 09:38 | Link to Comment snowball777
snowball777's picture

Get the right bike and you can divert the hooker money to beer and meth!

Tue, 01/18/2011 - 09:47 | Link to Comment Bigger Dickus
Bigger Dickus's picture

nope, no drugs for me

Tue, 01/18/2011 - 11:53 | Link to Comment Problem Is
Problem Is's picture

Watching sweaty, bald Cramer the Clown rant... does make one say no to meth...

Tue, 01/18/2011 - 09:46 | Link to Comment More_sellers_th...
More_sellers_than_buyers's picture

+1 million...I'm in...I say we spend all our money on 8 balls and partition it out to hookers...besides, it will be worth more than gold when the shit hits the fan

Tue, 01/18/2011 - 13:28 | Link to Comment lunaticfringe
lunaticfringe's picture

I've found that tranny hookers are hilarious. And the Triumph Rocket III will leave what hair is still on your head in the jetstream. Sweet.

Tue, 01/18/2011 - 09:46 | Link to Comment The Axe
The Axe's picture

I am shocked that Citibank could not CREATE a beat on earnings, revenues are harder to fudge. But Wall Street, lead by the ringmaster clown himself JC. are pounding the stock. The real fact is that no one really knows, or wants to know the true bookvalue of Citibank. It has become beyond insane. The crazy uncle in the basement, but the fact remains with all the help from the Fed, Tres. and FASB accounting how can you MISS. 

Tue, 01/18/2011 - 09:47 | Link to Comment More_sellers_th...
More_sellers_than_buyers's picture

BTW did anyone else notice that they turn on the HFT buy bots at 8am now? Jeeesuz they dont even wait till 930 anymore

Tue, 01/18/2011 - 09:48 | Link to Comment Quinvarius
Quinvarius's picture

They should have followed JPM's lead and picked better numbers.

Tue, 01/18/2011 - 11:51 | Link to Comment Problem Is
Problem Is's picture

Citi should get really bold about lying and pick the BLS to pick their phony numbers...

Wall Street owns Wash DC... why not outsource?

Tue, 01/18/2011 - 09:51 | Link to Comment whatz that smell
whatz that smell's picture

listen proles... the bernank has issued a new diktat: "buy the fucking plunge".

praise be the supreme leader! all hail!

may the bernank ease a thousand years!

Tue, 01/18/2011 - 13:33 | Link to Comment lunaticfringe
lunaticfringe's picture

A bank run by a snake charmer. This surprises who?

Tue, 01/18/2011 - 17:36 | Link to Comment thepigman
thepigman's picture

No top line on this junker. What a

friggin surprise.

Tue, 01/18/2011 - 17:37 | Link to Comment thepigman
thepigman's picture

Lucky they can fake it adding back in

loan loss reserves.

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