Lampert Sparks Hope for a Citi of Dreams

As word spread that hedge fund guru Ed Lampert has silently amassed a stake valued at over $800 million in the world's largest bank, Citigroup (C Quote), frustrated investors cheered in hopes that Wall Street's sleeping giant will finally wake up.

Shares of Citigroup, which have been stagnant for most of this decade, jumped $2.12, or 4%, to $54.91 on Wednesday after Lampert disclosed in a regulatory filing that he's been buying shares of the banking juggernaut since last year.

The news comes as Citigroup has been slowly losing credibility with investors as its expenses have continued to grow faster than its revenue despite a series of promises that change was at hand. ...