April 14 - Breakingviews editors discuss why the mega-bank's generally positive first-quarter results still leave lots of room for improvement.
It hasn't been the best of times for Citigroup what with fraud founded its Banamex unit and its failure to pass the Fed's latest stress tests. But today. Some pretty good news Anthony tell us about. Yet relatively speaking and it backs in last week taking -- -- mr. exist today sixty. -- to be an existence actually their beachfront innings and on the top line revenue which is a wonderful thing for banks that that -- to having. The the little problems each his own little problems last month. Well you mentioned not JPMorgan was last week and wells have as a stack up with those cuts what I think it was considerations and mortgages. Taken a bit of it because it's an actress and union enough and you know it's -- right -- businesses come down I think on fixed income trading. -- I think since he has gone now sloppiness and making Logan now is not putting too much to readings that between -- -- it's you know they have some of businesses that you know they've both they present reflective of the average is that I think of that that the issue if the city it's. At what we do to make this is so -- about what went. Right and that's that's a hop cool right -- don't they go return on assets. No point 8% and the states people wants banks making 1% on us that at -- I think over tonic -- -- acts around 8% and airlines give and take. Banks need to get around 10% or more thought that the target the city was tempest and next year that this is -- itself. -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- These tax breaks to go all the losses they had backed up against these and -- -- -- them as a vote at him he's the most amount of that they managed you know since the crisis. Doesn't matter because they can't do anything to return capital shales because they felt the stress test you know what could be so we know what is CEO Michael corporates plant here when disease what what is Janet trying to make things what was funny bumping -- at the moment not what cease to exist as firstly. And as it was when talking to the fat extensively in effect seems to want to -- it down but it should that you're ready to face it they just told you don't get nothing else that would until overtime at this point exactly. I think the other thing is is uneasy said a few months ago at the end of and -- it. Since he just needs to me actually cranks out much more revenues and keeps cost -- the significance ground to market share things like fixed income and I don't claiming. See if there was an instance on the coolest when they claim they're trying to cubic that the credit under -- -- -- not. Getting to loose credit as the east in the -- has nothing to -- so I hope they made it on a couple of things that -- he went up to because you know what that we have golden later in the week very quickly at Morgan Stanley and what we expect from those -- Like based on what we've seen some cities today -- movement in fixed income is the big issue. Out of those two firms Morgan and Goldman so much because of that revenue than it is right he's mega banks six -- -- that the news there is not going to be it's it deepening -- and I think we hit it. Yet -- revenue jobs and innings tops that's -- this announced here and probably last quarter as well you know war will be looking forward to those results later in the week. In the meantime stay tuned for more breaking views tomorrow.