Citigroup's (C) Tight Purse Strings Could Haunt Them - Analyst
Tweet
Share
E-mailGet Alerts C Hot Sheet
Price: $144.97 --0%
Rating Summary:
31 Buy, 10 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 3 | Down: 6 | New: 31
Rating Summary:
31 Buy, 10 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 3 | Down: 6 | New: 31
Join SI Premium – FREE
According to a report from FOX Business Network's Charles Gasparino, Mike Mayo is standing by his position that Citigroup Inc. (NYSE: C) is not doing enough to keep the firm competitive, despite finally getting a meeting with the bank's management.
Mayo is scheduled to meet with Citigroup chief executive officer Vikram Pandit on Friday, following a two year ban from the firm's management for his public criticisms.
Mayo said Wednesday that the Pandit and Citigroup are failing to spend enough money on everything, according to Gasparino.
“The note lays out how so-called capital expenditures at the bank, which includes ATM, real estate, the bank’s computer systems, etc., have been declining at a more rapid rate that it is being replaced, leading to an infrastructure that may be outmoded compared to its competitors,” Gasparino wrote.
Mayo notes that Bank of America Corp. (NYSE: BAC) is spending roughly twice as much on capital expenditures at about $2 billion per year, adding that Citigroup is spending less now on infrastructure than when the bank was created in 1998.
Mayo said that he plans to bring the issue up with Citigroup’s management in his meeting on Friday.
Mayo is scheduled to meet with Citigroup chief executive officer Vikram Pandit on Friday, following a two year ban from the firm's management for his public criticisms.
Mayo said Wednesday that the Pandit and Citigroup are failing to spend enough money on everything, according to Gasparino.
“The note lays out how so-called capital expenditures at the bank, which includes ATM, real estate, the bank’s computer systems, etc., have been declining at a more rapid rate that it is being replaced, leading to an infrastructure that may be outmoded compared to its competitors,” Gasparino wrote.
Mayo notes that Bank of America Corp. (NYSE: BAC) is spending roughly twice as much on capital expenditures at about $2 billion per year, adding that Citigroup is spending less now on infrastructure than when the bank was created in 1998.
Mayo said that he plans to bring the issue up with Citigroup’s management in his meeting on Friday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- BofA Securities Downgrades Principal Financial Group (PFG) to Underperform
- Barrington Research Starts CBIZ, Inc. (CBZ) at Outperform
- Litchfield Hills Starts NextPlat (NXPL) at Buy
Create E-mail Alert Related Categories
Analyst Comments, Insiders' BlogRelated Entities
Charles Gasparino, Citi, Mike Mayo, Vikram PanditSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
