Should I buy Citi Group Stock?
Citigroup Inc.’s disappointing third-quarter results highlight a growing economic divide in the United States: Wall Street is thriving, but Main Street is still ailing. Dragged down by share conversions and one-time charges, Citigroup posted a slim $101-million (U.S.) profit yesterday, along with a per-share loss and a $529-million loss from continuing operations. Like JPMorgan Chase & Co. and Goldman Sachs Group Inc., Citigroup’s bond trading and other investment banking operations generated healthy profits. But those profits were overwhelmed by steep losses in its traditional business of lending money to consumers and companies. Citigroup’s $101-million profit excludes preferred stock dividends and a $3.1-billion charge linked to converting preferred shares into common stock. The bank’s major problem remains its loan portfolio. Citigroup, which is one-third owned by the U.S. government and still owes the Treasury Department $45-billion, suffered $8-billion in credit losses in the qua
