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Eyes out -- story indeed a case let's continue with that despite the surprise announcement my next guest remains bullish on Citigroup's stock.
And a company's future joining us now -- the US banks equity analyst for S&P capital IQ Erica -- Eric thank you so much for joining us so.
You wrote to us first thing this morning after the announcement essence he's maintaining its -- rating.
And that the departure -- candy is and executive.
But that you will also note under his leadership Citigroup did -- to turn around as evidenced by strong earnings so.
Explain -- your taking your reaction to that the surprising news this morning.
Chart -- it's a negative in terms of how the departure came about we would prefer to hear a succession pattern.
Path and have -- like a one year.
Lead time on that.
However in the negative I think we'll be short lived and we keep our buy recommendation.
As we see that Citigroup is on the right track.
After 44 years after the.
She -- that this is happening to me was this a -- -- what do you think happened because of course you know the gossip as a ramp but all morning about what kind of precipitated.
This sudden change what's your back.
Cash and stock options in 2000 and -- -- and and it could have been may be some sort of effort to pull back its compensation that he is -- there in the same league says side.
Jamie Dimon at Citigroup at JPMorgan.
Com thanks Charlie he deserves that you think that's a crazy -- -- I don't think so I mean he's helped turnaround the bank he's been there for five years.
And four years ago this was considered a zombie bank about on the verge of going out of business and now it's a healthy thriving international lender with strong capital ratios so no I don't think that he was.
-- -- -- -- Yet when that candid sold the hedge fund before taking over at Citi right he earned personally -- 65 million dollars which I think it's a lot of I can browse.
If you go Eric about about the -- you know new board took over last spring this Michael O'Neill.
A sitting in his chief and what did did -- plane and didn't eat with their life shareholder pressure for fur becomes ouster.
Those a lot of pressure from the forest from shareholders and from analysts.
I I think that -- many saw him as being too professorial.
-- strong academic background.
Maybe it was time to go with banker.
Com there may have been some pressure from shareholders.
There is a kind of tired of being in crisis small that they want to move forward with growth and continuation of capitol building.
And also they wanna shrink the balance sheet I -- Citigroup's balance sheet as two trillion dollars.
How much shrinking -- even more and cutting off some of the parade field businesses and then returning capital to shareholders they pay a penny per quarter.
Maybe this spring we'll have some better news on the dividend front.
Eric let me get your last comments on this report that he's taking over as we know he was overseas and he oversaw that so called bad bank for Citi do you think he's the right.
-- I mean he comes from the Europe Middle East and Africa.
Division which has been growing.
-- pretty strongly.
And I think he is the right.
I'm right -- -- fit age 52.
Right experience and I think he'll be a good leader first Citigroup we don't know that much about him.
Yet but updates on what we do know he he's probably the right man.
He's been with the bank for decades that's for sure air -- -- thank you fear for your time and insights today.
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