We Built This Citi


Citigroup (C) dropped 5% Monday. When will it be time to pick up this one-time financial powerhouse, on the cheap?

CNBC’s Charlie Gasparino joins the panel to explain which catalysts may turn this stock around.

Gasparino explains that Citigroup stock didn’t pop on Chuck Prince’s departure because Chairman (and former Treasury Secretary) Robert Rubin didn’t tell investors what they wanted to hear. Rubin didn’t articulate a new vision, and that’s what the Street is looking for.

As a Citigroup investor Karen Finerman is bothered by the fact that Citigroup leadership seems to have selected a strategy before selecting a new CEO. She questions whether the “supermarket” model works. (In other words, the ability to buy all kinds of banking products in one place.)

Gasparino adds that he thinks investors will be able to tell what’s next at Citigroup by the person brought in as CEO…

- If Jamie Daimon (JP Morgan Chase CEO ) comes in, Gasparino thinks that will send shares higher

- If John Thain (NYSE Chief ) comes in, Gasparino thinks Citi will get broken up.

- If Dick Parsons (Time Warner CEO who just announced he’s stepping down) or a top Citi executive comes in, Gasparino thinks the company will stay together but shares will whither.

On a related note, Gasparino says odds are 3.5 – 1 that Bear Stearns CEO Jimmy Cayne leaves his job in the next 6 months due to ailing health.


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Trader disclosure: On Nov. 5, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (ATVI), (YHOO), (DIS), (HAS); Najarian Owns (CY); Najarian Owns (BIDU) Options, (C) Options, (GOOG) Options, (GS) Options, (VMW) Options, (WIND) Options,Najarian Owns (YHOO) Options; Finerman Owns (ASD); Finerman's Firm Owns (GE), (MO), (TWX), (TYC), (CMVT), (YHOO); Finerman's Firm Is Short (MDY), (IJR), (MER); Finerman's Firm Owns (CROX) Calls; Finerman's Firm Owns (MSFT) Options; Finerman's Firm Owns Russell 2000 Puts; Finerman's Firm Owns S&P 500 Puts; Fienrman's Firm Owns (C) Options, Finerman Owns (C); Finerman's Firm And Finerman Own (GS), (HD), (KFT); Finerman's Firm Is Short (LEH) And Owns (LEH) Puts; NBC Universal Is The Parent Company Of CNBC; GE Is The Parent Company Of CNBC