Brokerages/Wall Street
Mayo also cut earnings estimates for the second time this week on Citi by 22 cents to 75 cents for the fourth quarter and by 20 cents to $4.05 for 2008 as a result of the CDO writedowns and its exposure to structured investment vehicles.
Analysts on average expect Citi to earn $1.02, according to Thomson Financial. "We believe there could be additional pressure on CDO valuations (including the 2007 vintages) and a charge similar to the 3Q07 level is likely," Mayo wrote in a third note. "In addition, we believe that Citi may incur a loss on the SIV assets that are not eligible for the proposed Super SIV Structure." He reiterated his sell rating. Mayo's concerns about capital echoed those of CIBC analyst Meredith Whitney, who cut Citi to sell Thursday, arguing the bank is undercapitalized. Citi fell 4% Friday after a 7% plunge Thursday. Citi declined to comment.TheStreet Premium Services
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| Dow Jones | S&P 500 | NASDAQ | 10-Year Note |
|
|---|---|---|---|---|
| 12,419.86 | 1,313.32 | 2,837.36 | 16.25 |
Oil *
103.00
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|
DOWN
160.83 |
DOWN
19.10 |
DOWN
33.63 |
DOWN
1.06 |
10 Yr
1.62%
SPDR Gold
151.91
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|
-1.28%
|
-1.43%
|
-1.17%
|
-6.12%
|
Data delayed 20 minutes |
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