Citigroup's (C) Tight Purse Strings Could Haunt Them - Analyst
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Price: $143.90 -0.74%
Rating Summary:
31 Buy, 10 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 4 | Down: 7 | New: 31
Rating Summary:
31 Buy, 10 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 4 | Down: 7 | New: 31
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According to a report from FOX Business Network's Charles Gasparino, Mike Mayo is standing by his position that Citigroup Inc. (NYSE: C) is not doing enough to keep the firm competitive, despite finally getting a meeting with the bank's management.
Mayo is scheduled to meet with Citigroup chief executive officer Vikram Pandit on Friday, following a two year ban from the firm's management for his public criticisms.
Mayo said Wednesday that the Pandit and Citigroup are failing to spend enough money on everything, according to Gasparino.
“The note lays out how so-called capital expenditures at the bank, which includes ATM, real estate, the bank’s computer systems, etc., have been declining at a more rapid rate that it is being replaced, leading to an infrastructure that may be outmoded compared to its competitors,” Gasparino wrote.
Mayo notes that Bank of America Corp. (NYSE: BAC) is spending roughly twice as much on capital expenditures at about $2 billion per year, adding that Citigroup is spending less now on infrastructure than when the bank was created in 1998.
Mayo said that he plans to bring the issue up with Citigroup’s management in his meeting on Friday.
Mayo is scheduled to meet with Citigroup chief executive officer Vikram Pandit on Friday, following a two year ban from the firm's management for his public criticisms.
Mayo said Wednesday that the Pandit and Citigroup are failing to spend enough money on everything, according to Gasparino.
“The note lays out how so-called capital expenditures at the bank, which includes ATM, real estate, the bank’s computer systems, etc., have been declining at a more rapid rate that it is being replaced, leading to an infrastructure that may be outmoded compared to its competitors,” Gasparino wrote.
Mayo notes that Bank of America Corp. (NYSE: BAC) is spending roughly twice as much on capital expenditures at about $2 billion per year, adding that Citigroup is spending less now on infrastructure than when the bank was created in 1998.
Mayo said that he plans to bring the issue up with Citigroup’s management in his meeting on Friday.
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