Citigroup has been struggling since 2007. This current economy doesn't help. So when Citigroup reported positive earnings this quarter (the first since 2007) there was a cheer on Wall street as the bank stock jumped about 38%.
But what does this all mean? Is this real good news and will the price finally get some sticky upside or is this just a blip on the radar?
After all, even the most optimistic economists and pundits weren't predicting a recovery this soon (remember Canada's Minister of Finance, Jim Flaherty's comments about the expected recovery?). The markets across the board started to uptick, but there have been so many false positives that it's hard to gauge what the "true" direction is. Especially with such short windows preceding the good news, it's tough to see how other banks will be doing.
Analysts should be cutting up Citibank's books to verify the authenticity and strength of Vikram Pandit's comments regarding Citibank's fiscal strength.
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