This is what I said on October 3, when Wells Fargo undercut
SaudigroupCitigroup to buy Wachovia.
That tells me Citigroup might be in trouble, as they took over Wachovia’s banking operations earlier this week. If they don’t have the capital to buy Wachovia, it tells me their balance sheet is worse than that of Wells Fargo.
The other side of the coin is that Wells Fargo’s stock is in better shape than Citigroup’s, given that Citi has taken a monstrous hit over the past 12 months.
Still, Citi had an inside track to pursue Wachovia. The company that used to be the top of the capital industry is now a tier beneath Goldman Sachs, Wells Fargo, Bank of America, and Morgan Stanley.
At the time, Citigroup was trading at $18.35 per share.
As of right now, Citigroup stock is selling at $3.77 per share. A 79% drop in just two months.