the major blowout at the top of citi group? stocks are burning hot the so is a city near. vikram pandit pushed out. the street send its approval and of the shares are back into the green. vikram pandit said he was resigning but charlie gasparino says he was ousted vikram pandit has said he is facing pressure from the board. to said there was no way this was his decision? coming up we have sheila bair live praising the city grew bored but we will ask your should city group be broken up? , a test doeth pressure? the market feels no pressure at all. off to the races with good news from europe right now we're up 111 points but look at the nasdaq charging ahead s&p 500 up more than 12. we have until. and we have the cfo. caterpillar and boeing joining at the top pushing the market higher this is a broad-based rally we have traders at the new york stock exchange and chicago mercantile exchange. yes the ceo was ousted but the broad-based raleigh, what are people talking about? >> how the averages just one week ago now the nasdaq broke through with the 50 day moving average and ha

to two hundred thirty five point six million shares which was about four point nine percent of citi group max robert rubin the master seven billion that he who way those poor people you know people talk about the pump and dump scam of facebook it was only one hundred four billion dollars of zucker bergen wall street they stole fifty billion with goldman sachs of course remember goldman was involved in the three i.p.o. scam where they sold stock to traders and investors completely outside of the f.c.c. law they broke the law they committed fraud ok we know that but here you have robert rubin the master of seven billion dollars in some shape and citigroup has banned this basically. from fraud for years now this is the one of the most highly trained stocks in the world it's a stock that goes into the algorithmic trading programs on a daily basis millions of shares trade every hour of citigroup stock and it's right there for the taking all the front row in there and cherry picking that goes on robert ruben one of the just just really in the pantheon of fraudsters you know he's got to have a s

yes it was the one nine hundred ninety eight merger of citi group and travelers group that depended on the u.s. government overturning the portion of the depression air act that required banks to be separate from capital market businesses like traveler salomon smith barney holdings might well see sandy weill what was the architect of this conglomeration and of course e book to made his moneys on the campus somewhere smoking a big fat cigar you know trying to investors billions in some way that's not going to be you know inflationary well of course wasn't also robert rubin who was in the clinton administration as the treasury secretary who campaigned to have it overturned and then went immediately to where did he go after that then they went to citigroup of course that he cashed in for hundreds of billions of dollars by using an insider washington connections he's one of these he's one of the biggest of the original revolving darr door goldman sachs private sector back to the government back to the private sector making a huge paycheck on each transaction and then walking away from the

sanford while better known as sandy weill who helped to build the behemoth citi group is today now says break up the big banks. so i think what we should probably do is go and split up in the banking and banking. what is the significance what kind of legs does this movement have and what could be the motivation for him saying this now we'll talk about it and the delegate blackrock vanguard firms that collectively manage more than seven trillion dollars are weighing taking legal action against banks being investigated for rigging lie boy this is according to bloomberg add these to the list of class action lawsuits we've started to see or could see and what our guest co-host jim rickards says may be the real live or manipulation crisis let's get to today's capital account. so boy did sandy weill raise more than eyebrows yesterday when the former chairman and c.e.o. is citi group said anough with these too big to fail banks take a listen i'm suggesting that they be broken up so that the taxpayer will never be the risk. they deposit it won't be at risk the leverage of the banks will be some

citi group -- citi group is saying so far it will save money with the changes a and we'll look to see how the stock is reacting this morning. but again 11,000 jobs cut at citi group. >>> the british company that owns fresh and easy grocery stores is examing its options. they continue to show losses. despite that they have been approached by other companies interested in buying some or all of fresh and easy. >>> 6:20. a san francisco dog napping case finally over. >> it was just like the worst nightmare imaginable. >> how neighbors help a severely ill man get his precious dog back. >>> 680 at the sunol grade looking good. we do have problems in san francisco. look at you guys with your fancy-schmancy u-verse high speed internet. you know, in my day you couldn't just start streaming six ways to sunday. you'd get knocked off. and sometimes, it took a minute to download a song. that's sixty seconds, for crying out loud. we know how long a minute is! sitting, waiting for an album to download. i still have back problems. you're only 14 and a half. he doesn't have back problems. you kids hav

as citi group said anough with these too big to fail banks take a listen i'm suggesting that they be broken up so that the taxpayer will never be the risk. they deposit it won't be at risk the leverage of the banks will be something reasonable and the investment banks can do trading and not subject to book or rule that they're not subject to not being there when they can make some mistakes. now the ironies should not be lost as sandy weill was at the helm of citigroup when it was becoming the behemoths it is today he was instrumental and pioneering the one stop shopping bank model even violating remaining provisions of glass steagall at the time in the process here is inside jobs filmmaker and predator nation author charles ferguson talking to us about it take a listen. citi group wanted to acquire travelers fact it did acquire travelers before the glass steagall act was repealed and so it was at the time an illegal combination of a commercial bank and an investment bank is travelers which was at the time an insurance company also owned a large investment bank. but alan greenspan the

citi group, sun life, met life. you sold some jpmorgan today. >> i've loved jpmorgan for a long time. i think that none of this news today was surprising that they would increase their dividend. we know they'd like to do a buyback. yet the performance of the stock i think makes the likelihood of being able to do the buyback at the scale they announced unlikely. they try to be judicious in their buying back stock. they were able to buy in the low 30s in the last quarter or two. >> so much for that. >> so much for that. now it's well north of book value as a pe multiple it's not expensive, but it certainly isn't as cheap as it was. so sadly, much as i love jamie dimon, i had to sell a little bit of jpmorgan into this rally. >> big crush on the show, jamie dimon as i understand. >> not everybody. >> right here. >> to your left and perhaps you as well. and obviously melissa who's sick again today. 80 million shares jpmorgan traded today. much more than normal volume. you wonder if they'll get around to 1/3 of that. pete

citi group, year-to-date just up over about 2%. ge up about 6% year-to-date.etflix, year-to-date down about 6%. so let's dig in a little more on each of these names. first up, citi group. joining us on the newsline, we've got rbc capital markets gerard cassidy. do you believe that some of the europe fears, the european banking crisis and the basel iii capital ratio concerns already priced into citi group already? >> we do. especially when you think of the basel iii capital returns. they'll easily meet the levels and we don't anticipate them having any problems reaching the basel iii capital levels. but the european problems certainly are very volatile. but the news here for citi, all of the european operations are only 15% of their business. it's not a major part of their business. >> but just when we think we're getting comfortable we have something like the jpm whale trading loss. comes out of nowhere. boom, loses billions in market cap. how do we know there's not something like that sitting around citi? >> you're right. that's part of the risk. when we look

really digging into your thoughts i'm not as if you're totally familiar i don't follow citi group and too much except for knowing that he basically. started a hedge fund and then sold it to citi and then ended up running city and i don't

>> citi group is our first chart and it's a three year chart.he $23 to $25 level is very important. it's been tested, it held in the fall, this is the third test in the last few months, and it's gotten weaker and weaker on each retest. if we look at jpmorgan, you can see that european banks have 25 year price lows in this week, and jpmorgan has fallen just like all of the u.s. investment banks have, i think jpmorgan and citi group will follow european banks lower. >> all right, that's the word on the technicals from ennis and chris, we'll talk to you again soon. >> we're in the final stretch here and the market losing altitude for sure. we have seen the gains cut in half and then some. our next guest is predicting a 50% chance of a recession. why the economy is going over the edge, and timothy geithner saying quiet when being pressed about breaking up the big banks, listen to this. >> do you have any reaction? >> he's one of the architects of the super market concept. >>> there you go, would it be in the best interest of banking investors? and d

health of the global economy to discuss this i'm delighted to be joined by the vice chairman of citi group worldwide a call is good heroes call us cities one of the fifteen top banks that's just been downgraded by moody's do you agree with that move we wholeheartedly disagree. we think it is a backward looking. ratings change we don't think they've taken into account the tremendous improvements made by the industry so very disappointing very disappointing what are the material effects you expect as a result of this week it's hard to say at this point. but. we believe it is unwarranted. uncalled for and of course like a review mirror view of the banking industry in the us let's broaden this out washington and brussels what do they need to do to find we tackle this euro dollar roys in a crisis as a top bank well it should be a brussels first of all it is a european situation obviously we would like to see it dressed i think conceptually . one of the things that we learned is you have to do it big and you have to do it sure. and. piecemealing it is not to solve the problem and actually it cou

doubled down max because here's the next headline new chief of staff former hedge fund exec at citi group made money off mortgage defaults so citigroup of course is basically another government sponsored entity it out read it as a private company listed on the public markets but it's always been backed by the u.s. government essentially but from two thousand and six to two thousand and eight jack lew obama's new chief of staff was chief operating officer citibank's alternative investments division who made billions on john paulson betting against the subprime mortgage market and after citi group was bailed out by the government to the tune of what forty five billion dollars he collected a bonus of nine hundred thousand dollars after they became publicly owned. jack lew one of the gangsters citigroup. traded on inside information. to make incredible profits now they've used the money that they made trading on inside information mark manipulation documented many times and this is not a secret they're using the profits to buy their way into government to become a socially obama's but this ja

stray shit is slowly ugly for good citi group shareholders at the c.e.o. shareholders at their annual meeting shareholders of citi group voted against the pay packages that had previously given a company executives including twenty five million bucks given to citi group c.e.o. pandit although it is non-binding and can't influence the company's eight practices it said a powerful message of discontent to both citigroup's leadership and to wall street firms in general one analyst called the move his story saying that no other wall street firm had come under such fire from the shareholders let's hope this is just the beginning of a trend and the shareholders continue to pressure corporate executives to clean up their acts of bad senator john mccain earlier today mccain a strong supporter of mitt romney weighed in on the doggy gate scandal he tweeted a picture of his son's dog saying good picture of my son jimmy's bulldog apollo i'm sorry mr president but he's not on the menu horse this line was referencing a section of the president's book dreams of my father

banks settlement itself pretty much a slap on the wrist let's not forget that this is the same citi group the received forty five billion dollars in bailout money and yet for knowingly passing on bad loans the f.h.a. actually encouraging their employees to do so causing millions of dollars in losses and taxpayers insurance claims and profiting off of it all they have to pay one hundred fifty eight million dollars in a fine let me just remind you that just in the fourth quarter of two thousand and eleven citigroup's net income totaled one point two billion dollars that is just in the fourth quarter and those are considered to be dismal earnings so now let's go through a couple more details of what exactly this lawsuit exposed at that citi group was up to pro publica is it a nice job of pointing out the juiciest bits for us today the quality control unit in charge of reviewing the mortgages the bad ones that they were selling they have . marching orders to pass questionable loans by brute force how the company even started basing compensation for some employees on how many loans got through

that's about 4% of city groups current work force. city group says the cuts will save about a billion dollars starting in 2014. this comes on top of nearly 100,000 jobs cut at city group over the past five years. >>> nasa posting some intriguing video of our planet that was taken by a satellite at night. this video here shows the earth lit up by city lights in various parts of the globe. it was taken by a new satellite for nasa and the national weather service and was released just this week during a conference in san francisco. scientists say the new day/knightsen sore on the satellite makes it possible to view previously unobserved events on earth such as nighttime cloud formation. >>> we have gotten a lot of rain over the last couple days. are we pretty much done for now. >> we've got a break in the showers. they're very light. might be a few more tonight but it's really winding down so that's the good news. again this was more of a run of the mill storm as compare today those we saw over the weekend or sunday. live storm tracker 2

last year, city group core expenses were $3 billion, and the revenues went down $8 billion. that's a bad formula in any industry you're in. ironically after a few years, i'd say the jury is out. but in the case of dick parsons, the jury had long given a verdict. >> susie: we have to leave it ere. any disclosures to make? do you own citi stock? >> i do not. >> susie: thanks for coming on the program. we've been speaking with mike mayo, author of exile on wallviated to wall street. >> tom: little bit of selling pressure moving into the weekend. let's get you updated. the major stock indices finished with small losses after not showing much conviction today. and we finished out the week pretty much where we were one week ago. the dow industrials traded higher on two of the five sessions for a fractional loss this week. the nasdaq was up three of the five session with a gain of four-tenths of a percent. and the s&p 500 finished higher by three-tenths of a percent compared to a week ago. for the s&p 500 and the nasdaq, it's the eighth week of gains out of the past nine. as for to

to europe where spain is more likely to be headed for a troika debt restructuring that's what a citi group analysis is saying at least now we've talked a lot about who loses in what our guest calls iraq a lives the regin middleton is back from traveling the world and he found some places that stand to cash in and he'll reveal the pockets of optimism. that it's an island paradise we're going proceed to the opportunity if you can be found . that's ahead will give you the details and apple nation you could say we live in one half of all u.s. households own at least one apple product that's according to a c.m.d. seized survey what was so much focus on apple not just by consumers but markets in general are people missing the bigger tech picture we step away from the herd we ask you to as well and look at the bigger picture and what this means for entrepreneurs meanwhile get out your popcorn or maybe a stiff drink m.f. global witnesses were back on the hill today reportedly with evidence showing some of the firms employees were aware of the shortfall in customer accounts days before the firm imp

first off, people will be buzzing about city groups numbers on monday, which comes after sunday. as long as the emerges markets were red hot, smoking, you have to like city group's business because only third of city's business comes from the united states. not anymore. we like the domestic strength of mortgage jpmorgan and wells fargo, we can't like city group nearly as much anymore. that's why it will not ignite a further bank rally when it reports. sorry. tuesday we're going to hear from a company that has the most value to be unlocked of nif major corporation on earth. that is johnson and johnson. long the company that i recommended when i was a goldman sachs in the ages. we're going to be listens to the new ceo. i don't want to put too much pressure tomb too much pressure on you, alex but if he uses a word like unlock or three words like bring out value, you won't be able to buy the stock anywhere below 70 bucks. let alone 68.66. this stock has nod not had a stitch of good news in months and all it does is liv tate. wait until gore ski says unlock. this is going higher. a lo

in sight so working retail investors safely work their money to wait out the storm banking giant citi group says russia why while their answer is simple russia's economy stronger and has more potential than most european economies see for yourself russia's g.d.p. may grow as much as four percent this year that's according to the economy ministry europe while most of it expects negative growth in two thousand and twelve even the strongest economies show a meager rate's debt debt related problems are investors nightmares while turns out russia has the lowest levels of government and corporate debt of any country in europe around nine percent the average for the eurozone is ten times that while europe struggling with double digit unemployment russia's jobless rate when they fell to the lowest level in thirteen years and this is stimulating consumption russia's already europe's biggest consumer in many categories and this year expected to be the absolute leader germany in terms of course sales how can you capitalize on russia's relative strength citigroup suggests investing into global companie

now we think about city group th -- citi group who we ported monday morning.e technical side, richard ross, and the chart, what do you think? citi has been a laggard among a strong group. now it's doing well today, what do you think? >> i think putting it as a laggard is putting it kindly. this is not a pretty stock chart. that's just the weather and we're traders, weather men don't make money in this business. we see 393% decline, and we see a stock that has not been above it's average in 50 months. this textbook triple bottom, we tested and he'll that level on three separate occasions going back to last december. we think this set you up for a sharp move in the other direction. it would be a 38% retracement from that march high to the lows from just a month ago. >> even i can see that double bottom there. >> it's extremely well defining, but it doesn't mean it's not going to work. some say the technicals are self-fulfilling, that brings you to your 38% retracement and your 200 day moving average. you see your 50 day coming in here. what we really like about

it was over toxic mortgage debt well it was because citi group wasn't forced to admit liability that he rejected that will now a federal appeals court has stopped just short of rejecting his rejection saying he overstepped his authority come on what is it going to take as these them the nation's guilt and speaking. simply do not know where the money is or why the accounts it's not been working so well to. remember that while the end of global brokerage trustee says they know more some more of the money is they want to distribute another six hundred eighty five million dollars to customers well another of the trustees had been asked by u.s. lawmakers to abort his mission to pay bonuses to m.f. global exacts so just who are these trustees we'll explore this and more let's get to today's capital account. where do i begin on this friday we've got whistleblowers we've got whistleblower naysayers too big to fail banks at the crux of a lot of it the question of trustees and courts regulators the congressional budget office maybe all doing their bidding at least that's how it seems sometimes

the political system remember in argentina the political system gave their ok to nationalizing city groups debts essentially in the country and then they impose austerity measures on the public to pay off city groups debts same model in greece greek people were foisted upon them all the outside. debt then the government said ok no you know their debt this foreign bank debt same thing in ireland with angle irish was a domestic bank they try the same thing domestically they said oh let's run up this and huge amount of debt and the government said now the people owe the debt while meanwhile the tanks were being driven out of ireland and and you know metaphorically speaking same thing with grace with all of the wealth same thing in the states the wealth is being hollowed out something that you know paul krugman at the new york times will talk about keynesianism he never talks about the fact that the wealth been hollowed out by tank driving kleptocrats and there's that's the core issue of why the economy is collapsing oh why because he's in the back trying to steer one of these tanks well i mig

budget to work as the vice chairman first a group robert rubin former treasury secretary joined citi group he was chairman of the executive committee that's the group board of course before he was treasury secretary he was a top trader and exact a goldman sachs so before you say you don't really disagree with this is this ok well i it depends what they do if they're coming out and there were bad expertise the other way is phil gramm i think does he was thinking economics professor maybe ruben as well pay their expertise in financial markets and they're working in areas that are related to their influence where they're not going to be spending time using their past connections or trying to help shape the strategies of government affairs for these companies i don't have a problem with it but mostly doesn't happen though i think most of them are very involved in the government affairs strategies because they know it better than anybody humor government appears that they will that's why they're desirable to a firm like sort of goldman sachs right yes and i think they have to be i don't have a