Market Minds

Charlie Peabody of Portales Partners “deconstructed” an internal memo of Vikram Pandit, Citi’s CEO, on the bank’s repayment of the TARP loan: Citigroup : “Today we announce a series of transactions to repay the $20 billion of TARP outstanding and terminate the asset guarantee we received from the U.S. Government.” Translation : I am sick of working for $1 per year. Citigroup : “Today we are strongly capitalized…” Translation : We have diluted the shareholders by a factor of six. Citigroup : “… efficient…” Translation : We have cut the company in half. Citigroup : “…and created a strong foundation for the future.” Translation : We are working on a strategy. Citigroup : “There are still economic challenges ahead…” Translation : Forget about any kind of bonus. Citigroup : “Over the past few months, I have visited many of you in the U.S and around the world…” Translation : I am trying to avoid the home office. Fun stuff! > Source : More Than an Uptick? ALAN ABELSON Barron’s, December 21, 2009 http://online.barrons.com/article/SB126118067457297863.html

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Translating Citigroup’s CEO