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Citi Will Meet with Me: Analyst Mike Mayo

Citigroup executives will meet with financial analyst Mike Mayo, who has fiercely criticized the bank over the past two years, on Oct. 1, Mayo told CNBC Monday.

Citigroup Center
AP
Citigroup Center

Mayo, who is Credit Agricole managing director and a financial analyst for broker CLSA, said that Citigroup may have to write down about $10 billion in deferred tax assets in the fourth-quarter last year, making the bank's shares take a tumble.

"Citigroup has offered me a meeting October 1st," Mayo said. "I don't know why I have not had a meeting in 2 years."

Citigroup Chief Financial Officer John Gerspach will be at the meeting and CEO Vikram Pandit will also be present for part of the discussions, he said.

Mayo says Citigroup should write down losses on deferred-tax assets (DTAs) worth $50 billion, amounting to $10 billion.

DTAs are tax credits that companies may use to offset future tax bills, but they cannot be used if a company has losses over three years.

"Simply go to the accounting bible for taxes," Mayo said. "It says that the evidence for using the deferred tax assets needs to be objectively verified… what's objectively verifiable is that Citi has had over $20 billion of losses in the last three years."

Citigroup said in a statement that it is very comfortable with the recording of its DTAs.

The bank's financial targets, which call for a five percent increase in assets, are "overly aggressive," Mayo said.

Citigroup's assets grew too fast over the last decade and this is where the company's problems came from, he added.

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