Citi's report reportedly sunny, but no one's banking on it -- yet or maybe ever
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Early word on Citigroup's first quarter is that the bank will say that there is sunlight breaking through the clouds. ("Struggling Citi Posts Quarterly Profit," the Wall Street Journal just now says.) But hours before the opening bell, no more than a middling report was expected from Citigroup on its first-quarter results — unlike that supposedly brighter one from Goldman that lifted all boats (except the pirates') for a short time.
Despite the early news that the report will be sunny, analysts are likely to say, "Hmmm."
What Citi says about profits will be important, but not necessarily believed by analysts.
A concise preview from SmartMoney:
Citigroup (C) and General Electric (GE) are scheduled to release their first-quarter earnings reports before the opening bell. Citi's performance could set the tone for financials, which have benefited over the last week from surprising reports and guidance from JPMorgan Chase (JPM) and Wells Fargo (WFC). General Electric (GE), a seasoned blue-chip, will look to dispel some of the recent critiques brought against its management.
As for just the banks: No matter what Citigroup says, super-hedger George Soros says the U.S. banking system is "basically insolvent," as Seeking Alpha reminds us.
And Dwight Cass at breakingviews.com zooms in for a closer look at Citigroup even before the bank's conference call with analysts to note that Citi is "too big and troubled for the government to support ad infinitum." It has much more debt, according to estimates, than do Bank of America or JPMorgan, so beware of whatever bullshit emanates from CEO Vikram "Rhymes with Bandit" Pandit.
