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’Glencore prepares for take-off
After weeks of speculation (and spin) Glencore has finally published its Intention to Float document.
A lot of it is has already found its way into the public domain, but there are some additional nuggets like details of Glencore’s trading strategies (to follow in a separate post).
Don’t be surprised if NYSE volumes drop
… on account of Citigroup’s reverse share split.
Jeffrey Rubin at Birinyi Associates points out on Thursday that so far in 2011, Citigroup has on average represented 11 per cent of the entire daily volume of the New York Stock Exchange.
A risk management review of Citi, revealed
That’s an old Valentine’s day letter — sent on February 14, 2008 — from John Lyons at the Office of the Comptroller (OCC) to Citigroup CEO Vikram Pandit. We bring it up because it’s the subject of a new column by Bloomberg’s Jonathan Weil,
The EM retreat continues
And so… the rotation out of EM equities into DM equities goes on.
Data from Citigroup:
So, in the week to February 16 outflows from emerging market funds totaled $5.45bn, up from $3bn just the week before.
The pre-emptive UK rate hike
Citigroup’s Michael Saunders and Ann O’Kelly, on this week’s Bank of England rate decision:
We expect that the MPC will leave rates on hold at the upcoming [February 10] meeting. However, we believe it may well be a much closer call than many expect,
Legerdemath, or, derivatives dubiousness
Currently doing the rounds — an alleged instance of derivatives fraud, or at least, mispractice. With individual names (Omer Rosen) and banks (Citigroup) attached.
It’s written for the Boston Review,
Guy Fawked [updated]
Hands-free at last, etc. Terra Firma — boss: one Guy Hands — just lost control of EMI to a Citigroup manoeuvre. Click for full statement (PDF):
(H/T to Bryce Elder for headline)
Update (7:05pm GMT) — Terra Firma issued this slightly pithier statement on Tuesday afternoon:
An update on America’s riskiest banks
Cast your minds back to the SCAP — that’s the Supervisory Capital Assessment Program, better known as the US banking stress tests of spring 2009.
The results showed Bank of America, Wells Fargo and GMAC as requiring the most amount of capital;
Sneaky Citi, tricksy bailout
It’s November 21, 2008.
Lehman collapsed some nine weeks before and the US government is struggling to contain the fallout. They’ve started Tarp and injected funds into ailing financials, but it’s having little effect.
Buiter’s €2,000bn solution for the Eurozone
The latest (and as usual, substantial) note from Willem Buiter, chief economist at Citigroup, has landed in the FT Alphaville inbox.
The bulk of its 84 pages can be summarized in one line though: “no sovereign is really safe”
Insolvent – Greece, Ireland, Portugal and probably Spain
Former FT blogger Willem, ‘Maverecon’, Buiter has lost none of his power to shock.
He may be the chief economist of Citigroup but that doesn’t mean he can’t speak his mind as his latest essay for the bank’s clients proves.
On declining Irish deposits
At some point this morning Allied Irish Banks will finally get round to publishing its trading update. While we wait for that statement to hit the wires, Citigroup has published a report on Irish bank deposits and the extent to which the system is now reliant on funding from the eurosystem.
Citi sees no bubbles
At least not yet.
Although perhaps best to look away if you’re loaded up on US junk bonds, or Chilean and Indonesian equities in your portfolio.
Charts via Citigroup’s Global Bubble Tracker, as compiled by Robert Buckland’s equity strategy team (click to enlarge):
Citi slapped with subprime RMBS lawsuit
No sooner had rumblings over Citigroup’s “toxic mortgage pipeline” began — than the bank becomes the next in line to be embroiled in a mortgage-related lawsuit.
Spotted in Citi’s just-filed third-quarter 10-Q:
Decoding the Lloyds IMS (updated)
There’s not much granular detail in Tuesday’s trading statement from Lloyds Banking Group, the part-nationalised British bank.
Hard numbers are few and far between (there’s just nine excluding repetitions),
Adventures in de-equitisation
The latest corporation looking to take advantage of the yawning gap between earnings yields and (after tax) debt yields is IBM.
Via Reuters:
IBM SAYS AUTHORIZED $10 BILLION IN ADDITIONAL FUNDS FOR
Citigroup posts Q3 2010 profit of $0.07 a share
Behold the second in your line-up of Q3 2010 US bank results.
Hot on the heels of JPMorgan on Friday comes Citi on Monday — and it’s a slight earnings beat, with net income of $2.2bn profit or $0.07 per diluted share,
RepoCDSed
Fears of an extended foreclosure crisis put sizeable pressure on US bank spreads.
WFC five-year CDS is at 128bps (+10) according to Markit prices, Citi at 175bps (+11), and JPM at 96bps (+7). BAC is up 18bps to 197bps — its widest level since July 2009.
The 50-for-1 CEO job swap
Here’s a radical idea — fire all the CEOs of Stoxx 50 companies in Europe and replace them with a single president, who will serve as the highest-ranking corporate officer at each firm, with full responsibility for their stewardship.
Citi sued by Norwegian central bank
Inevitable, really. Though we wouldn’t have expected the staid Norwegian central bank to be the first (?) to take up legal arms.
After the US Securities and Exchange Commission exposed Citi’s super senior subprime slip — in which the bank misled investors over its subprime exposure between July and October 2007 — now come the lawsuits.
Rubin, Prince seemingly under scrutiny
Bloomberg does its homework and finds something intriguing in an SEC court filing on Wednesday, as the agency defended its decision to settle charges with Citigroup for $75m.
Reports Bloomberg (emphasis ours):
The Cult of Equity is dead. Long live bonds
Well, if Citigroup’s global equity strategist was at all still prevaricating on which side to take in the bond-stock decoupling conundrum, he’s firmly made up his mind now.
On Thursday Robert Buckland writes that the 40-year cult of equity is — quite simply — dead:
Mike Mayo’s Citi DTAaaaaaaattaaaaack!
Where oh where, did the Mike Mayo vs Citigroup dispute begin?
The CLSA bank analyst hit headlines last week after Fox Business News revealed Mayo had been “frozen out” by Citi. The reason? None other than Citi’s infamous deferred tax assets (DTAs) :
BHP and the cost of borrowing $45bn
Small wonder that, as we wrote on Friday, there’s a mini M&A boom at the moment – just look at the cost of borrowing for big, stable companies like BHP Billiton.
Citigroup reckons the $45bn credit facility put in place by the miner to finance its hostile offer for PotashCorp is likely to be just 3-4 per cent.
Citi’s super senior subprime SEC slip
One of these is a draft version of a third-quarter pre-earnings announcement Citigroup considered making in the credit-crunched October of 2007, in reference to its subprime exposure. The other is what actually went out.