Wednesday, January 20, 2010

Dick Bove and Vikram Will Ride Into the Sunset

"Dick Bove’s weird love story with Citi is one that is complicated and needs a lot of nurturing. Although it will never reach the highs of the one he had with BofA (Ken Lewis was a “visionary and tactician” who “was torn from his post by politicians lacking any of Mr. Lewis’ skills and successes.”) our Rochdale analyst friend is still full of hope.

Bove said in a report today that Citi -which reported a $7.58 billion loss in the fourth quarter -needs to be destroyed before it can succeed. The firm will be able to “emerge from the rubble” once it sells what he delicately describes as its “remaining lagging operations”: commercial credit, The Associates, Primerica, the remainder of Smith Barney and large portions of its mortgage and other weakened consumer portfolios."

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