Citi Gave Back One-Third of Profits to Financial, Legal or Regulatory Costs

Mike Mayo, an analyst at CLSA, raised his price target on Citigroup (C) from $3.50 to $4 and maintained his underperform rating. (Nope, I don’t get it either.) But this caught my eye.

For every $3 of profit the last decade, Citi gave back a dollar because of regulatory, legal, financial or accounting losses, observes Mayo. That means Citi’s main problem is how not to “mess up,” in Mayo’s view.

Sandler O’Neill notes that the Treasury’s stake in Citigroup — meaning the taxpayers — has fallen from 27% to 12%.

Posted by on October 4th, 2010 at 2:47 pm


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