Global Value

The strategy of the Citi to be saved happens to drain itself, coming off itself units of business considered secondary, those that include companies acquired recently, to concentrate itself in strategic areas like the retail bank all over the world. Also the investment bank and the benefit of transactional services have great importance in the new strategy of the executives of the Citi. Probably they sin of optimists, but it has been listened already to several analysts be excited with the good perspective that they observe for the organization. Between that they create to Pundit is Matt Or to him Connor, an analyst of Deutsche Bank that recognizes that the organization still faces risks, but also sees it well positioned to be useful economic recovery that is seen come in the USA. For OConnor, the organization will be able to follow with more facility of assets to become of liquidity in future situations of stress what improves its capacity of answer. In yesterday, the actions of the Citi closed to US$ 3,99.

In the vision of Or Connor the same could reach U$S 10, which would imply A potential increase of the 151%! You would cheer up to bet by the Citi? The people of Fitch Ratings would not recommend it. Analysts of the consultant wait for a 2010 with weak an operating one for the organization that will undergo the next year, struck by the heavy provisions of the credits with problems. The organization that counts on more than 200 million clients (more than five times the population of Argentina) and on operations in more than 100 countries already has reported amortizations and losses by credits to the consumer by US$ 100,000 million since the crisis exploded. What could happen in case the Citi fell definitively? I believe that she is one alternative that will not take place since the American government has learned the lesson of Lehman Brothers that he has had to fall to save the head to him to the rest of the important financial organizations in problems. The poor American contributor will see how its money happens at the hands of the financial giant, but it will not see it in the floor.

How much money will have to contribute the government of the USA to still on maintain the financial giant? It is a question difficult to respond that many in the government do not want nor to think about a possible answer. The problems of the Citi are serving to him as lesson to those who they must ahead take the regulatory reform in the United States. Days ago, in an article referred to the subject How is the new financial regulation of the USA, commented to them that one of the objectives of the new regulation will be to avoid that the too great organizations get to be to fall. We will be again tomorrow, Horacio Pozzo OPPORTUNITY OF INVESTMENT Aprovechemos this loss in Wall s$street to buy. As or the subscribers did of our newsletter of investment Global Value, who or recovered their cost when investing in the companies that we recommended to them. He wants to know which are? He can try entering here in order to find out it and to begin to invest in our recommended actions. Soon they leave the ones November! For subscriptions he clicks here or notary publics to for majors details. Original author and source of the article.

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