More Thoughts on Citi

Throughout the morning the hot topic has continued to be the Citi news. The stock is up a couple percent as we speak. A couple other points that I have read or come up with guests that I thought I would share with you during the commercial break.

1. Meredith Whitney from Oppenheimer & Co. has estimated that ten major investment banks have exposure to leveraged loans in the amount of $200 billion. She has been the dominant player in this Citi call. What will she say today? Does the pricing or sale of these assets to these three private equity firms suggest there is now a pricing mechanism and liquidity in the market?

2. For a long time these assets had to be marketed to the market and there was hardly a market for those assets. Now there is a market and interest. How does that change how these assets are treated?

3. Keep in mind Citi shares are down 19% year to date. They have announced $24 billion of losses on mortgages and bonds. They have a $2.2 billion dollar balance sheet. Is this small potatoes compared to their exposure?

4. CEO Pandit has suggested he will sell as much as $200 billion in assets. During the 2005 through the 2007 timeframe Citi accumulated $700 billion in assets. They have a lot of work cut out ahead for them.

5. They report earnings on April 18. They have a lot to prove and many are still calling for a further cut to the dividend. Will they do it? Do they need to to enhance stock performance?