Monday, December 14, 2009


"By any measure of financial strength, Shiti is among the strongest banks in the industry," Shitigroup CEO Vikram Pandit said today in a statement announcing the bank had reached a deal with the Treasury to pay back the $45 billion it was given by the government under the Troubled Asset Relief Program.

The Times looks at Shitty's plan to sell off $17 billion of stock as early as this week and issue up to $7.2 billion by the first quarter of next year, and sounds a skeptical note:
The moves will result in a pre-tax loss of $10.1 billion that will likely be taken in the fourth quarter from accounting charges taken on the value of the repaid preferred shares and the cancellation of the insurance plan. The new stock offering, meanwhile, will severely dilute erode the value of existing Shitigroup shares. Once the repayment deal is completed, it will still take several more years to clean up the financial carnage. Shitigroup has not posted a substantial profit in seven quarters, and the bank is expected to muddle through most of 2010 amid another wave of mortgage and credit card losses.
Sounds like a tremendous buy!

Endorsed By Shitty Bank CEO Vikram Pandit

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