Gasparino Says SEC Has Sent Two Letters To Citi
Presumably this is in response to the ongoing lock out of Michael Mayo, who as Fox Business previously reported claims Citi is cooking its books by misreporting its deferred tax assets, by Citi management. We assume the letters are of a congratulatory nature, and commend Citi management on alleged ongoing fraud, also sharing tips on how the firm's HFT traders can flash dash its worthless stock to a few trillion/share, guaranteeing that unlike in daily isolated flash crashes none of the transactions will be D/K'ed.
The analyst, Mike Mayo, of the securities firm CLSA, has been telling investors that Citigroup (C: 3.68 ,+0.02 ,+0.68%) should take a writedown, or a loss on some $50 billion of “deferred-tax assets,” or DTAs. That is a tax credit the firm has on its financial statement that Mayo says is inflating profits at the big bank by as much as $10 billion.
For that critique, Mayo has been denied one-on-one meetings with top players of the firm, including CEO Vikram Pandit, Chief Financial Officer John Gerspach, and any other member of management, while other analysts enjoy full access to the bank’s top executives, FBN has learned.
More as the fluid situation solidifes:
Gasparino’s sources say the SEC has sent Citi at least two letters asking them to justify their accounting DTAs in question by Mayo. Citi tells Gasparino “We are in continuous contact with our regulators, including the SEC, as part of its normal comment and review process on our SEC filings. We respond to all such comments in due course.” In addition, Citi told Gasparino: “We will meet with Mr. Mayo in due course.”