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-- -- big bank earnings out today but the numbers I'm not looking so good for Bank of America and Citigroup and Elizabeth MacDonald is now with the defense he Mac's bottom line what what.
-- good in these were.
-- -- you know it's a cost you know in five years after the housing mess.
And we're still seeing them cleaning up the housing mess and so what Wall Street analysts are telling me is.
They don't think that bank America and Citigroup can justify their cost basis than in walker now we know that both are laying off right Bank of America.
Laying off 30000 as of the fall of you know 2011 their -- now laid off 171000 in -- those workers.
You know in December might in the new CEO of Citigroup Michael corvettes are reeling off 111000 workers.
And he also warned work -- at the time that our revenues will be hit by 300 million dollars because of the cost adjustments there.
But you know and there's also -- legal costs and regulatory costs that are hitting their bottom line to.
It's basically cut sixteen cents at a Bank of America's earnings per share and you know Citigroup also one point three billion legal costs also hit its bottom might.
But I think -- the it candidate and -- got tough time convincing Wall Street that they can really rationalize our cost structure -- too much fat marbled through the operations there from Citigroup has is still sitting on a hundred sentiment billion dollars.
And crisis era assets and you know the thing is with Citigroup -- trading below this split adjusted faces remember they split may have twenty elect one -- and look at this there's still the current forty bucks at that time and 2000 -- -- -- -- -- There are trading at four dollars and fifty cents so Michael Corvette CEO of new CEO of Citigroup on the shareholder conference call he said.
He was asked point like what do you what is your goal hear his answer it's I wanna stop destroying shareholder capital -- -- stock is down guys.
Out from -- six years ago so.
You know this a bank also Corsica forty -- -- rescue funds.
Whether or not Citigroup here's a big deal this important for Citigroup they wanna buy back stock -- had urged reserve hand them an embarrassment rejecting it last year -- applied again to do with socked by back.
But another dollar not yet we need to hear.
Not -- -- if you got -- these stocks like six months ago you almost doubled your money both of them.
Yeah yeah right.
Bank of America about 42% Citi up almost 50% -- yeah people better bottom fishing actually the dumb all of these stuff about -- -- as -- -- it's of course market timing right I mean it to did you know could you call the bottom.
Neither of those Stoxx six months ago Smart guys -- -- as you point -- prop might look may have.
But they know the guys that I'm talking to -- again and again.
There waited to see these guys deliver because you know we've -- with Citigroup and for investment bankers heading the ship there a lawyer heading the site fair deal maker has yet.
Now we've got a real -- -- maybe he can and we're now without possible work pain and I'm not my people I've been coming on saying it's time but get into the financials -- you can't still say.
The financials as a whole rate -- -- still stuck -- even in the financial sector well yeah I mean it right and they've financially TF -- up what 9% over the past year or so and earnings for the sector up.
I've got -- time and again these -- have rate which -- pressures both bank America and Citigroup and it's certainly hitting their bottom line.
And what was a lot of noise of their earnings if their loan loss reserves -- draw down around them and what is true earnings from their business and what -- not send an anomaly in the group is what you -- might be.
They gave lots and if they'll be very best performing stock -- the downtown Los engineers raising its -- go this year -- you Mac thanks very much appreciate it.
I it is quarter.
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