Summing Up Citi


CNBC's Charlie Gasparino reports Citigroup CEO Vikram Pandit has been resisting pressure to break up the giant bank.

Is Pandit making a mistake?

I think it’s exactly the right move, says Jon Najarian on CNBC’s Closing Bell. I like that Citi owns Smith Barney and uses it to feed their very active institutional trading. I think having retail interact with order flow is the lifeblood of trading.

But why would the financial supermarket strategy work now when it hasn’t in the past?

Who says it hasn’t worked, counters Najarian. It’s the subprime mess that blew them up. Citi has a great retail arm which feeds into their institutional trading and then helps them make more money per trade.

Should anything be sold off?

No. I think what they have is very solid franchise. If they really have to sell, I’d think they should get rid of the credit card division. But stay whole if possible, he says.

How are you trading the Fed meeting?

I think the Fed will cut by 25 bps -- but that's a sell because The Street wants 50 bps. If you don’t see 50, I recommend selling, Najarian counsels.

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Trader disclosure: On Jan 29, 2008, 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 (DIS), (YHOO), (EMC): Najarian Owns (BIIB), (C), (CSCO), (ETFC), (MS), (MSFT), (MCD), (XLF); Najarian Owns (WEN) Calls, (AAPL) Calls, (YHOO) Calls, (EBAY) Calls; Finerman Owns (GS); Finerman's Firm Owns (TSO), (VLO), (WMT), (YHOO), (SUN); Finerman's Firm Is Short (MDY), (IYR), (IJR), (SPY), (CLWR); Finerman's Firm Is Short (LEH) And Owns (LEH) Puts