Stock Market (NYSE) Shocking Truth About CitiGroups CitiBank Profits "Quarterly"

Citigroup quarterly loss of 966 million dollars. You better read citigroups quarterly real close if you want the real truth. You can add another 2.5 billion dollars to the 966 million they claim they lost. Why is this? Citigroup changed their accounting methods in order to show a better than expected loss. When you take into account that they had to change their accounting methods to show they only lost 966 million dollars, you can then see that this number is not correct. Read this report to learn the truth about citigroup and citibank. Quote; Results included a $2.5 billion gain from an accounting rule that allows a company to record a benefit when the market's view of its creditworthiness declines.

As a matter of fact, I am looking at all the financial sectors in after trading and they are all falling. BofA is falling, Wells Fargo is falling, AIG is falling, Citi the same. If this is a sign of opening bell at the Stock Exchange on Wednesday, it's not looking good.

The bottom line truth about citi will not be known until their first 2009 quarterly is released. As soon as the numbers are available, I am going to do the research to find where citibank was really setting as far as profits go, on the day the famous citibank memo was leaked.

I personally believe that this little ploy by citigroups, citibank, will cost millions of investors in the Stock Market, their money. I believe that citibank will pay dearly for this little ploy. I think the only reason they will show a quarterly profit will be because of the added capital from the stock investors, post, memo leak.

The truth is that this has created such a stir in other stocks that I believe the big players will continue to throw money at this cheap stock, in an effort to keep the false hope alive for a few more days. This will draw out more individual investors and get them to invest, then wamm! The market will fall and these new investments will have been sucked up by the big players and the small investor will lose again.

You can watch citigroup at Live Citigroup Ticker

With the economy in shambles and more Bank failures imminent, CitiBank, a subsidiary of CitiGroup, has (purposely?) leaked a memo stating that they turned a profit in the months of January and February of 2009.

The leaked CitiBank memo from the chief executive of Citigroup, Vikram S. Pandit, said that the bank made a profit in January and February of 2009, and the quarterly performance, before special items and taxes, was the best since the third quarter of 07.

When the news of this leaked memo hit, Wall Street soared and gained over 4 %. CitiGroup stock rose from $1.00 to $1.40, up 25 %. Dow Industrials was up nearly 300 points, at 6,850.

Citigroup continues to climb and is currently trading at 3.15 a share. I am still of the impression that when the reality and facts come to the surface, the citigroup stock will plunge, leaving blind investors holding worthless stock certificates.

Citigroup Inc. (C) After Hours Trading

citigroup last traded in after hours trading at $3.17 a share. If you would like to keep an eye on pre hour and after hours stock trading go to (NASDAQ.com After Hours) or (NASDAQ.com Pre-Market Quotes)

With Stock Investors starving for profit, the news from CitiBank was too good to pass up. But with this news, also came warnings from several analysts. Mike Larson, an analyst who works with Weiss Research, told CNBC “This short rally is nothing different from what we have seen over the last year and a half, and I wouldn’t be chasing this.”

Larson also stated that “This looks like yet another bounce in a long slippery slope downward. The only real gains may be made by those who take advantage of today's rally by selling. "If you were smart enough to buy yesterday and sell today you made a great profit.”

Now, I will give you my take on this situation. If you know anything at all about finances, if you know anything at all about running a business, you will agree with me that this statement is meaningless. How can I say that CitiBank making a profit is meaningless? Let’s take another look at the statement;

The leaked CitiBank memo from the chief executive of Citigroup, Vikram S. Pandit, said that the bank made a profit in January and February of 2009, and the quarterly performance, before special items and taxes, was the best since the third quarter of 07.

Notice the comment, “before special items and taxes.” What are these special items? These “Special Items” are write-downs or better known as “Credit Losses.” Now, you tell me, how many businesses declare a profit before they first figure out all their expenditures and losses? I’ll tell you how many businesses do this, none!

CitiBanks CEO, Vikram S. Pandit, stated in the memo that we have turned a profit, he said this knowing full well that profit can not be determined until all loss factors have been considered.

I sure hope all these citigroup stock buyers understand that as long as housing prices are falling (still to drop at least 30 %) and loan defaults are rising, citibank is going to have to take even more asset write-downs.

This is just my personal opinion, if I had citigroup stock, I would sell it today. I certainly wouldn't hold on to it until the quarterly report comes out.

To further understand why the largest five Banks are failing, I suggest you read this article; "Regulatory reports: 5 biggest banks face huge losses."

Definition of Profit

The Best known measure of the true success of any business or enterprise, it's the surplus after total costs are deducted from the total revenue, profit is the basis of which tax is computed and dividends are paid. Profits are reflected in reduction in all liabilities, increases in all assets, and/or increase in the owners' equity. Profits furnish the resources for investing in future operations, and the absence of profit usually results in the extinction of the firm or business.

Disclaimer: The information contained on this site is not intended as investment advice. As always, seek the advice of a professional.

This morning, March 11, 2009, as I began researching this topic some more, I began to notice that I could not find the original Press Releases about this topic. The articles about the leaked citibank memo had been edited.

What I noticed at the edited Press Release at MSNBC was that they were in such a hurry to edit it, they made some mistakes. What got my attention was citibanks CEO's name. In the original it was written; "Vikram S. Pandit." In the updated version it says; "Vikram Vikram Pandit."

What was changed in these Press Releases was information was added to justify why the CEO said it was profit. But even with these changes, you can clearly see that all losses are not considered in citibanks so-called profits figure.

We will not know the full truth until citibank releases their quarterly earnings report. For the sake of all the common folks who bought into this, I hope I'm wrong.

At the moment citigroup is at $1.55, down from yesterdays after hours trading of $1.58.