Posts belonging to Category Citigroup/Smith Barney

New Book Reveals How Wall Street Firms are ‘Gaming’ the Capital Markets


Mike Mayo, a banking analyst who has worked at six Wall Street firms and has a reputation for independence from the banks he covers,recently published a book that reveals the fundamental unreliability of Wall Street research recommendations. When Mayo started out on Wall Street, he says he called them as he saw them. But when […]

Wall Street Banks Use Threats and Intimidation to Generate Positive Recommendations


Banking analyst Mike Mayo is an outlier because Wall Street’s intimidation apparently does not work on him. Mayo has written a book describing, among other things, what it was like for him to break the taboo against issuing a “Sell” recommendation on Wall Street. The title of his book, “Exile on Wall Street,” is a […]

Hedge Fund Heroes Getting Battered


Unfortunately, many investors are experiencing first hand the truism that hedge fund managers rarely outperform the market on consistent basis. John Paulson, the hedge fund manager who made a killing when Goldman Sachs let him select bad CDO assets, which he turned around and bet against, is having a tough time in 2011. His hedge […]

More Hedge Fund Problems at Citi?


Bloomberg reports that Citigroup invested approximately $800 million of shareholder’s equity in its own private equity and hedge funds during the third quarter, despite knowing that regulators are busy drafting the Volcker rule, which would curtail the practice. Citigroup reportedly classified the $800 million as Level 3 assets, which are illiquid assets that are valued […]

Judge Challenges ‘Cozy’ Deal Between the SEC and Citigroup


U.S. District Court Judge Jed S. Rakoff has been asked by the SEC and Citigroup to approve a settlement of charges that Citigroup misled investors in a $1 billion dollar CDO deal called Class Funding III that was tied to residential mortgage-backed securities. Citigroup would pay a $95 million penalty and not admit fault. The […]

Is the SEC Selectively Enforcing the Securities Laws?


Reuters blogger Felix Salmon seems to see evidence of the SEC colluding with banks to let them off the hook for most of their “built to fail” synthetic (derivatives-based) CDOs (see “Is the SEC colluding with banks on CDO prosecutions?”). What has raised eyebrows was an email from a Citigroup spokesperson saying that Citigroup has […]

Occupy Wall Street As A Global Phenomenon


Occupy Wall Street has swept the globe and is generating enormous sympathy and interest in Asia as well as Europe. The spread of Occupy Wall Street to Asia ? especially Japan ? is further evidence that it is a mistake to dismiss a global groundswell of anger over the flow of money from banks to […]

Why Wall Street has a Culture of Corruption


America’s big brokerage firms just don’t get it. Rather than focusing on their clients’ best interests, which would enhance the firms’ long-term interests, they are focused on getting rid of so-called “less productive” financial advisers to save money, and flogging the rest to sell more high-fee products to generate more revenues for the firm. Morgan […]

Middle Class Values Behind Occupy Wall Street


USA Today reports that Occupy Wall Street is a middle class revolt (“Protests spotlight a stressed middle class”). Long term unemployment, slumping pay, rising health care costs are behind it. “These people are not just protesting for the hell of it,” Allen Sinai, chief economist at Decision Economics in New York, which consults for banks […]

Risks Increase for Structured Products Involving Bank of America, Citigroup and Wells Fargo


The risks are increasing for investors in principal protected notes, reverse convertibles and other structured products associated with Bank of America, Citigroup and Wells Fargo. Moody’s recently announced that it has downgraded the debt of those financial institutions. One reason given: the U.S. government is unlikely to bail them out again. “It is more likely […]