Wednesday, November 21, 2007

Goldman's Downgrade of Citi

On Monday Goldman stirred the market when it downgraded Citi to a "Sell." Goldman's analyst based this decision on the threat of:

- more CDO writedowns at Citi
- pressure on the firm to shore up its declining Tier 1 Capital ratio
- declining consumer credit trends
- lack of clear leadership

By the end of the day, Citi shares had declined 6%, reaching four-year lows.

You can read the Goldman Research Report Here.

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