Imagine my surprise when I opened today's NYTimes Business section and discovered this headline: Stocks Rise on Upbeat Memo From Citigroup. "There must be some mistake," I thought. But no:
[Citi] turned a profit in the first two months of the year, and...its quarterly performance to date, before taxes and special items, was the best since the third quarter of 2007.
At about 2 p.m., the Dow Jones industrial average was up 292 points, or nearly 4.5 percent, while the broader Standard & Poor’s 500-stock index rose 5.2 percent — the biggest gains for the two market indices since late January.
Um.. what? How could this be? Just this morning I read not one but two scathing WSJ articles about how Citi is going down the shitter and that even Ken "lost $1.79 billion in the fourth quarter but hey we were profitable for the full year right?" Lewis is dissing on the ailing bank. Understandably, I'm more than a little suspicious about this upbeat news. After all, "special items" have been known to include everything from volcano insurance to crippling subprime losses. And despite the fact that Citi's stock "surged 23 percent in midmorning trading," 23% of $1 isn't much to brag about. So, Vikram, you've earned the pats on the back I'm sure you'll receive from many in your organization, but I wouldn't hold my breath for that bonus.
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