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Originally posted by elston
Cool, (not) bigger government wants to create a new agency to look out for investors. One of these guys is from my state of IL. Wonder if Obama owes him a favor.
March 10 (Bloomberg) -- Senators Richard Durbin of Illinois and Charles Schumer of New York introduced a measure to create a financial oversight agency to help consumers obtain financial products such as mortgages, credit cards and retirement savings accounts without “hidden dangers or unreasonable tricks.”
LAYOFF DAILY UPDATE
Sony Pictures -350
Coachmen Industries Idles Plant -90
Charlotte-Mecklenburg Schools -500
Eaton Corp. Furloughs -450
Pepsi Bottling Plant Closing -66
Grand Junction Steel Closing -100
Kadant Closing Plant -32
Wonderbread Closing 2 Plants -187
Armstrong Flooring Closing Plant -172
LA Schools Face Cuts Up To -8,000
Tahoe Truckee School District -95
Toro Company -235
RTI International Metals
Crisis? What crisis?
Commentary: Citi's Pandit and B of A's Lewis diverge in damage control
Last update: 9:19 a.m. EDT March 10, 2009
NEW YORK (MarketWatch) -- Vikram Pandit, the chief executive brought in to manage the troubled Citigroup Inc., is sticking to his well worn line that not only is the bank in fine shape, its main problem is that its undervalued.
"Despite the steps we've taken to strengthen our capital base, I am, like you, disappointed with our current stock price and the broad-based misperceptions about our company and its financial position," Pandit wrote in a memo to employees Monday. "I don't believe it reflects the strengths of Citi ; our newly strengthened capital base, our unique global franchise." Read Citi memo.
To Pandit, Citigroup's $1 share price is the result of investors who are mistaken about Citigroup's ability to ride out the recession. He claims Citi has been profitable so far in 2009, but it's a hollow hope that almost fully ignores four separate government interventions at a cost or commitment of close to $400 billion and a dilution of existing shareholders.
Up to a third of Citi could be owned by the federal government under the latest bailout announced a few days ago.
The reality at Citigroup is so bad that Bank of America Corp. chief executive Ken Lewis has defended his bank by distinguishing its performance against Citigroup. He suggests B of A will not need more government money and that the bank's acceptance of $20 billion to buttress its acquisition of Merrill Lynch & Co. was a strategic mistake that eroded confidence.