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On the eve of the much anticipated meeting between financial securities analyst Mike Mayo and Citigroup executives.
Like -- taking another shot at -- -- was the meetings still on -- feelings hurt Charlie Gasparino as exclusive details.
Well the note came out today Brian where he basically called Citigroup's management incompetent because he'll spend enough on capital improvements.
And they said the again in this note that we we -- to two to obtain.
That the stated the company still has massive financial obstacles to two to get over.
But according to our sources the meeting is still on as scheduled for Friday and -- when he does meet with them.
-- -- -- preview I spoke with -- early today.
He is gonna ask about capital expenditures one of the things that -- has criticized Citigroup is that -- they're the they're counting particularly on deferred tax assets.
PTAs easily sustained there over estimating earnings because of those PTAs but he's now taking a shot -- -- -- expenditures and here's the interesting thing.
Every bank has an infrastructure computers need to be integrated you don't have to keep up keep you very you're AT and physical plant Citigroup has gotten larger since 1998 when it was first created.
By the merger of travelers and Citicorp.
I yet it spends less on capitol in its capital expenditures today and extend back then as a matter of fact if you look at about possible.
Talk to mail he's look at it and and and if you look at what there if you look at competitors like Bank of America.
Based Bank of America essentially spends twice as much on on on its infrastructure -- Then than -- Citigroup and you know this isn't -- -- story because.
Usually when banks start to fail when they stuck to what they were when they're in trouble -- -- -- in trouble I must succeed as fail they almost fell back and.
2008 Charlie they were bailed out -- -- build -- they would not exist but for the -- at a circuit taxpayer ought to pick up and what they're hoping he's actually but when good right now they're they're surviving maybe that is guaranteed but went when companies are in trouble one of the things they do.
As you know is they cut back on infrastructure.
And clearly that's -- me it was pointed out in this it's a pretty agency noted lays out year by year how much they -- since nineteen I didn't see -- -- We we have seen you for comment they have no immediate comment they may have a -- later on and we'll update the look.
-- the media still.
According his latest -- -- -- any notice of -- I guess thanks for having me after a couple of years here's my latest note here all incompetent at it is that is that sort of like held a meeting is gonna go and only.
And in knowing Mike.
Not really but.
It will be he's a little I think is an easel in little smoother -- you know then then maybe Brian Sullivan but a.
-- -- -- calling them basically.
-- -- -- that you're not investing in your own business wise do you -- does -- does it comes I will say one thing about Mayo and.
This is why you gotta love them I mean the -- -- a lot of people on the on the outside you know as competitors think he's a block parties.
And he basically looks for attention.
One of the great things about male -- to be a great -- Like that that's about as we don't care that's why we love it I should just like us what you know what he thought that it doesn't think about he actually does his homework.
And he actually takes on management whether they're gonna meet with them or not.
That is so important as what's great about a mile -- couple years ago -- the pull -- -- what it was like ninety some percent of all analyst ratings were set -- buys her hardest to set a strong by buying right.
There's an almost no selves might actually every company is great fight this guy is not my credit rating agencies like what's good -- it's -- -- it's fine.
I had triple -- they'll probably put that.
-- that that we're all dead the next day.
But you know and what's interesting about it -- -- the right you know could we we obtained this this note and I called up I said you know -- you know it's -- -- -- just -- time he -- Listen I go because it goes he just -- it another shot and for publicity he said listen Charlie.
I was looking to the financial reports you know do my prep work from Friday.
I came across this capital expenditures -- that stood out.
And -- -- -- that's good research.
The quote Simon and Garfunkel it could be.
Male and handed down by the schoolyard you know I mean I mean I love that graphic -- -- -- behind the child is building a 501 man.
I think might -- can do on the pushers.
Let's agree to -- pull out of the party but definitely I can do if you -- into it was something you -- And he took death certificates and get people and again I didn't get people about it and -- -- CF if you write.
Make sure they had a few more than you.
Gasparino let us know when you're about the case I would try to get it on -- -- so far at the wire.
It's not I will I will update the website and we have mail.
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