citigroup's chairman steps down. dick parsons retires after 16 years on the board of the struggling bank. monday, a verdict's expected in the houston trial of alleged ponzi schemer allen stanford. for more financial news, tune in to "nightly business report"

and that's what citigroup needs to do. there's $2 trillion in size, and there's a $1 trillion bag inside of city group. >> susie: how will it pay off for investors? the sfok is way down from a year ago, but has been make making a move up and close to $34 a share. what do you think about the future of city've citi stock for investors. >> citigroup has many problems, and i outlined this in a report a week ago. this is a positive first step. the question is will mike o'neill be a figurehead or hands on. will he only talk to the board or will investors get to hear what he has to say? we need to see better expense control at citigroup, and see that they're not going to overly invest. and see ta they're actually changing the dna of the company so that they're truly managed for shareholders, and shareholders are not treated as second class citizens. although, this is an enormous job for mike o'neill, but it's a step in the right direction. >> susie: in less than 20 sblds, whaeconds what is your t being on track? >> partly on trac

citigroup is not jpmorgan and neither is bank of america. these stocks shooting up like this, they're starting to get perhaps a little ahead of themselves. the other thing i want to mention for the important story of the day, that ten-year note, because this happened with the federal reserve announcement. basically they made no reference at all to qe-3 and implied, we've got gas inflation, but it's under control. here's the important point, that inflection point where we started moving. look at that yield, up 2.12%. that's the highest close here going back i believe to october. that's got a lot of people concerned, maria, that that bond breakout is finally going to happen. >> bob, thanks so much. bob pisani. we have big news today in the financial services sector for sure on the jpmorgan increase in the dividend to 30 cents a share. up from 25 cents. the major averages closing at multi-year highs. we saw a market first today, the dow closing above the key 13,000 level, and nasdaq closing above 3,000. our next guest is the co-manager of the r

before we do, we have breaking news on citigroup. mandy drury with the story. >> thanks a lot for that, maria. the "wall street journal" is reporting that the citigroup chairman is not going to be standing for re-election on the citi board. he will give up the chairmanship. he's been on the board itself for 16 years. apparently citigroup is reportedly expected to name michael o'neill as the new chairman, maria. mr. parsons was the longtime former ceo of time warner. his departure is seen as a confidence in the remaining ceo vikram pundity. if you just want to take a look at the reaction in terms of after-hours share price, we're sitting at $34.07. citigroup has lost about 94% of its value since its all-time high which was back in 2006. so it's an incredible fall from grace in terms of shareholder value. >> it certainly has been. thank you so much, mandy. let's get more on sunday's presidential election in russia. joining me via skype is former world chess champion and chairman of the opposition movement, united civil front of russia,

so how are citigroup executives doing these days? nicely, thank you. last year, its ceo, vikram pandit, took home almost $2 million in salary, almost $4 million in deferred stock, stock options that may be worth as much as $6.5 million, and a $16 million retention bonus. and yet, just a few days ago, citigroup failed the latest stress test by the federal reserve. it may not have the means, in order words, to survive another financial fiasco. there's no clearer example of the collusion between government and finance than the deal that created citigroup in the first place. at a standing room only press conference in april 1998, sandy weill, head of the investment bank and insurance company travelers group, and john reed, the longtime ceo of the commercial bank citicorp, announced a gigantic, $140 billion merger. just one problem -- the merger flew in the face of this law. you're looking at the banking act of 1933, also known as glass-steagall. glass steagal was enacted during the great depression to prevent investment banks from ever again gambling with

citigroup of 45% in the last six months. index, steve is with us but manager at sun america asset management. saying they continue to have key catalysts that will drive the markets higher. >> there he is. along with anthony chan, chief economist. are we in a -- a position right now where the markets, some of them waking up to the fact that economy is in full recovery right now? >> not only is the economy getting better, but you're continuing to see incremental movement in that direction so that when people make forecast and ask, are the risks to the down side or up side, you will more likely hear the risks are in the up side. >> more for the financials then? >> we talked about this about a m ago, that there may be a melt up with bank of america, citigroup. a lot of managers still underweight names. if you think of bank of america which might be a proxy for the group, trading at ten times earnings, more catalysts are coming as they increase dividends and share buybacks in terms of dividends citigroup would be the next company

it doesn't have some of the baggage that citigroup did. and suntrust is sort of unique in that it paid its tarp back late last year. unlike some of the other banks that paid it back in 2010. they had overhang from tarp repayment in 2011 and a dividend raise in august 2011 as well. i think they were a little overzealous with getting a capital plan out there that would get them back in line with bbnt. i like suntrust better than any of the four -- >> let me also just clarify what i said. forgive me for roping you in with the analyst community. you of course are a money manager, correct? >> yes, correct. >> citigroup, a good buy or great buy, as you say. is that a scenario where you see bank of america did the best coming out of the first stress test, now a real opportunity for ownership in citi shares as well? >> if you're looking in the short run, i don't think any of these banks will be the be all end all of trading vehicles. as we get more accustomed to the new normals with dodd-frank, these will be ongoing codified things. there's still

. >> susie: citigroup shares get slammed after the nation's third largest bank fails the latest stress tests. and from stress tests to black eyes, goldman sachs' reputation takes a hit as a top executive resigns with a very public goodbye. it's "nightly business report" for wednesday, march 14. this is "nightly business report" with susie gharib and tom hudson. "nightly business report" is made possible by: >> susie: good evening, everyone. my colleague, tom hudson, is off tonight. the sounds of relief are audible on wall street today. just a day after the federal reserve unveiled the results of the bank stress test. 15 of the -- 19 of the largest banks passing hypothetical tests which are their ability to withstand a severe recession. citigroup was among those that didn't pass and today shares fell over three percent as investors weighed the bank. looking at what's in store for shareholders. >> reporter: one day after getting snubbed by the federal reserve, citi shareholders are perplexed. the fed says the nation's third largest bank isn't worthy of an invitation to the big bank party

now, in the bear corner, we've got citigroup. citi finds urban outfitters to be ludicrous, given that the ceo just resigned and to make matters worse, they think the consensus estimates are still too high. the reason? urban's ramping up spending to build up its e-commerce business and expand internationally. but when you factor in those higher expenses, the operating expenses the company won't be able to make their numbers unless it sees a dramatic increase in its gross margins, what they make after the cost of sales. and citigroup doesn't think that's likely. not at all. the problem as they see it is that urban's been marking down its products. and while markdowns declined in the latest quarter, they're still well above most of last year. considering the tough competitive landscape, citigroup thinks it's likely that these markdowns could become a persistent and permanent problem. or at the least it will take a while for urban to wean customers off heavier promotions, a problem that jc penney is finding, and it's lethal to the co

citigroup people think there will be a gigantic buyback.he best house that's out here. i'm a little concerned the expectations may be too high. >> warren meyers, always good to see you. that is it for the first hour of the

one of the big names on that list of short fallers was citigroup.sn't been enough to temper the optimism that we've seen on the markets. we have the fat si 100. >> it's up by .33%. the european market is pushing higher. >> it was very brief for the chinese markets in asia. there was a pop at the beginning of the session as the ben bernanke sentiment came out and wall street closed sharply higher. hong kong and shanghai both ending the day in the red as the chinese premiere warned that there was going to be no short term let up on the squeeze on the property market in china as they take the heat out of property prices. he says property is still too expensive on the main4r57land. >>> that's it for this edition of "world business today." thanks ever so much for joining us. i'm nina dos santos, cnn london. >>> i'm andrew stevens in hong kong. we'll be back joined by ali velshi in a few hours with the opening bell on wall street plus all the very latest from the world of business right around the globe. the globe. we'll see you then. -- captions by vitac

citigroup shares downloaded -- downgraded after they failed to pass the fed's test of how they woulddown turn citigroup says it will try again later this year. [ unintelligible ] investors are not thrilled about this citigroup shares down. [ unintelligible ] we are ing a little with the dow up 19 points. -- monster rally yesterday the dow to the highest level since 2007. nasdaq closed 3,000 the first time in 11 years. bloomberg index best trading at 3/4 of a percent. apple on the rise for a sixth straight session. the stock just higher and higher ahead of the new ipad release morgan stanley says the stock could go to $720 a share. i'm jane king. >>> 6:48. >>> we've been getting rain tahoe getting snow. this was the scene last night on i-80 at castle peak at donner summit. chains are a must on 50 as well except on vehicles with four-we'll drive yesterday slow blowing sideways made skiing almost impossible. >> we were going to come in morning it was blowing so hard the resort wasn't open. >> atler elevations around 4,000 feet there was -- at lower elevations around 4,000 feet there was

morgan chase, wells fargo and citigroup are considered among the strongest capable of weathering another economic crisis. but shares ended mixed. turning to a couple of foreign buyouts: shares in zoll medical spiked almost 18%. almost 24%. word it's being acquired by japan's ashai for $2.2 billion. zoll will run as a separate unit, expanding asahi's u.s. healthcare operations as it seeks to diversify its businesses. china's largest online video company youku said today it's buying china's number two online video firm tudou holdings for over $1 billion in stock. both companies had been locked in a bitter dispute over copyrights, which recently settled the merger will mean cost-cutting and allow the parties to concentrate on their video platforms. together youku and tudou make up over a third of china's online video market. tudou shares exploded to the upside, more than doubling. youku shares also got a nice boost as well. rising almost 24%. and finally tonight, yahoo is suing facebook over ten patents, including advertising methods and systems on the web. the lawsuit filed in san jose, ca

quite rightly happened, we were looking in the case of citigroup at 10% or so on its portfolio. this time around, the fed's looking at a loss rate of 11.2%. but crucially in the interim, citigroup has realized losses on its loan book equivalent to that 15% of its peak assets. so we have a bit of an issue here as to whether the fed's running a proper balance sheet exercise or a sensitivity analysis that doesn't take into account what the banks have booked and realized. >> what do you think comes next for citi? >> well, i think overall these results are having a set of assumptions we can always take. they can prove to be relatively realistic over the years so i think this exercise is getting credibility and that's the most important thing. that's why the market is rallying, and think that that vindicates their approach is something that's going in the right direction. >> thank you both for speaking to us on these issues. we do have you staying with us. we're going to break. coming up later in the day, we'll be speaking exclusively to meredith whitney who made her name with a 2007

the rms falling short include citigroup, ally finaial, suntrust, and meife. now, keep in mind, this is a worst-case scenario. the fed wanted to see how banks would fare if unemployment soared to 13%, stocks fell 50%, and home prices tanked by more than 20%. the stress tests were originally due out thursday afternoon, but around 3:30 today, j.p. morgan announced a dividend increase, which told investors it had indeed passed its stress test. that helped stocks close at their best levels of the day. the dow jumped almost 220 points, the nasdaq added 56, closing above the 3,000 level for the first time in 11 years, and the s&p rose almost 25 points. joining us now to discuss those stress tests, fred cannon, co-director of research and banking analyst at kbw. >> hi, how are you? >> susie: good, thank you. what do the tasks tell us about the strengths of the banking system? >> primarily they tell us that the bank that rebuilt the catal can with stab a very tough scenario, that's really the good news behind this, is that the capital levels are back at the banks. ove

citigroup similar situation.re seeing a nice resistance area and we're consolidating right around 34. now, what we're seeing also is lower lows so the stock is poised to move higher. it needs a catalyst. the numbers coming from thursday could be the potential catalyst that takes this stock to challenge july highs and 2011 highs. >> gold was weaker today as we saw earlier. throw up a chart of it and talk about it. brian kelly brought gold today. break the chart down for us. >> i agree. i'm a buyer of short-term weakness in gold. what we're seeing shorter term is a bunch of lower highs and a lot of our clients are asking should i invest in gold now. should i buy gold now which tells me there's money on the sidelines looking to enter into this name. take a step back. longer term trend for gold is intact from 2008 lows we see the trend line which 2011 we move so a stretch from that trend line. we came back recently and tested it. trend line is around 1630. i would be a buyer as low as 1630 hoping the next move takes

and meredith whitney was the first to call the dividend cut at citigroup. so long ago. so we'll see what she has to say about that. but you know, this transparency that we're talking about, the federal reserve is actually identifying the four banks that failed these tests. you know, it can go both ways. look what happened with met life last night, trading down. and you have to wonder if this action does impact these businesses going forward. a financial services company, not up to the standards, according to the federal reserve. interesting. >> you would think, rick, we were out of the fed's comfort zone where the yields are right now, yes? >> just asking the question puts me out of my comfort zone. to think that a government entity is looking at what's comfortable or not comfortable for investors. gets you down the road of how tricky it is going to be for the fed to maneuver, as asset changes and me rens moves, even as the economy, at a slow clip, does move. >> rick, everybody says down here, the fed's not going to worry if the fed goes to 2.25%. when do the feds start

frank and of those nineteen fifteen tasked with financial metlife sun trust in most surprisingly citigroup failing the test to find out if the big banks have enough capital to weather an extended financial crisis reportedly even worse than that of two thousand and eight this includes a thirteen percent jobless rate of fifty percent drop in stock prices and a twenty one percent decline in housing prices so three be happy with the result sleep tight knowing that the big banks are ready to weather another financial crash or should we look to the past as a warning or discuss it with me as laura lister host of the capital account or thanks for joining us tonight thank you for having me ok overall how should we feel about these tests right have they really done us so well in the past according to people i'm talking about a lot and we should not feel well and if we want to use the past as a model part of the two thousand a panel crisis we had banks and i plan i think stress test with the lying callers we had fannie mae freddie mac. . all causing stress tests before they were either failed banks o

when the stress test came out two days early, bank of america didn't need to raise capital and citigroup flunked. didn't even matter. after a quick initial collapse of the citi stocks, it's back to where it was. bank of america is roaring. and what bank is doing the best? one of the biggest failures, suntrust. my charitable trust, we've been buying suntrust. it's just not that bad. when even the failures go higher, you lose a ton of bearish ammo. they don't have a case. after the stress test results came out, they don't have it. we keep hearing the housing business hasn't turned, the good news is all anecdotal. i've been getting reports from home depot, lowe's and tractor supply, three housing and gasoline related plays that should be getting crushed, right? what am i hearing? that business is off the charts for the month of march. the numbers are so incredible that you know these runs are far from over. that's a slap right in the face of bears. if gasoline is so high, you want to cut out or cut back on discretionary spending, right? particularly food. but today chipotle and panera both

is paid day for the ceo citigroup. bonusesludes his first crisis of 2008. starbucks is coming out with own a single cup of brewed this year. ,ven though it has the capsules able to makeill be expresso based drinks as well as copy. no price point given so much. >> we have a problem of the gerber baby formula. >> live at bloomberg headquarters. >> >> thank you. we will see you soon. , a frightening experience with fairfax county. on the report said there a deadlydown during shooting. learn why scientists say we n on alert about a solar system. here is 395. [ male announcer ] we asked real people if they'd help us with an experiment for febreze fabric refresher; they agreed. [ experimenter 1 ] relax, take some nice deep breaths. [ experimenter 2 ] what do you smell? lilac. clean. there's something that's really fresh. a little bit beach-y. like children's blankets. smells like home. [ experimenter 1 ] okay. take your blindfolds off. ♪ hello? [ male announcer ] and now new and improved febreze fabric refresher with up to two times the odor elimination so you ca

citigroup, sun trust, allied financial and metlife among the companies that failed to meet the fed'sards. burger king out with its own st. patrick's day promotion free fries with a special green sauce made by heinz. i'm jane king. >>> san francisco's famed fairmont hotel has a new owner. a real estate developer will pay 200 million dollars for the 591 room luxury hotel in nob hill. the previous owner had plans to concert the property into a highrise residential tower that never happened after the idea ran into resistance from neighbors and the city. >>> organizers for the music and arts festival in san francisco have announced the dates for this year. last august they sold out with 60,000 people continuing. this year's event will take place from august 10th to the 12th. some neighbors have complained about noise and traffic. a report found last year's festival generated more than 60 million dollars for the city's economy. a limited number of three-day tickets for in year will go on sale for a discounted price friday on their website. >>> some flooding, some wind advisories, definitel

however, three of the four banks that failed the fed's stress tests, citigroup, metlife and allied financialtruggled yesterday. news of stocks buybacks and possible dividend increases boosted wells fargo and key corp. meanwhile, apple, due to unveil the new ipad in stores tomorrow, jumped nearly 4% thanks to analyst upgrades. s&p broke its week-long winning streak. shares of proctor & gamble dipped before the day's close. chevron slipped lower at the end of the day as the price of crude traded near a one-week low. however, recent optimism about the u.s. economy helped lift the dollar to an 11-month high against the yen is examine one-month high against the euro. realtytrac said the number of americans receiving delinquency notices on their homes rose last month, while the number of overall foreclosures dropped. if you're going to use pay pal to vote on college basketball, you may want to think again. they sent alerts to customers using the service for march madness wagers saying their account lose has been, quote, limited. probably, you finally heard about speed dating. >>reporter: new yorke

investors dumped shares of citigroup in late trade after learning the nation's third largest bank was among those that did not pass the fed's stress tests >> economic optimism pushed the nasdaq above 3,000 since the dot com bubble burst in 2000. and adding to optimism a healthy increase in february's retail sales. urban outfitters was the exception, losing 5% on a weak earnings report. yesterday the u.s. asked the world trade organization to force china to ease restrictions on exports of raw materials. china's state-run news agency warned the move could trigger a backlash. former news international exec was released on bail for the second time yesterday in connection with an ongoing phone hacking scandal at the london tabloid. back here at home, the securities and exchange commission charged two amerprise financial advisers with insider trading one of them announced through alcoholics anonymous. >>> finally, the end of an era. the 2010 print edition of the iconic 32-volume set will be its last. >>> coming up, orlando uses dwight howard's magic while they still can. lakers win in doubl

we also have citigroup lowering their rating to neutral from buy. maria, the stock down 22%. >> thank you so much, seema. just 20 minutes before the closing bell sounds. nasdaq on course to snap a three-day losing streak today. renewed optimism that greece's debt restructuring will go through. that certainly put a floor and strength into the market this morning. the nasdaq near the highs of the afternoon, with a gain on the session of about 26 points. nearly 1%. the cbo volatility index sliding back below 20 today. the vix was pretty active yesterday. and it was closing above 20. but volatility has slowed down. that is the first time since february 15th we saw the vix move above 20. but we're pulling back today. ty, back over to you. >> maria, thanks. market volatility picking up again as maria just mentioned. the key question is, of course, how should you be trading. to help us figure it sut is darren wolf. darren, good to have you with us. let's start by talking a little about the euro. a lot of focus as we look ahead to tomorrow and that debt res

i think there may be better names to look at. >> let's look at citigroup here.ck that had a big run since bottoming out in november, december. somewhat similar, but not quite the steepness. >> not quite the steepness. it didn't break out until much later. it only broke its prior high recently in the march time frame. but the key difference here is, we're in an uptrend now with citi, but citi hasn't broken out of its uptrend channel. it's not overbought the way we see with jpmorgan. >> the wombottom line is -- >> the bottom line is, if you overlay the two charts, you clearly see jpmorgan perhaps has gone up a bit too far too fast. overbought. citi has a nice steady uptrend. you would think citi didn't pass the stress test, that would be the worst stock. technically i think it's the better stock to be looking at right now. >> barry sign over at direction el hamill. i don't know if people know about your firm, you employ about quarter of your employees as disabled veterans. >> we are owned and operated by disabled veterans and about a quarter of our staff are disab

citigroup, goldman, jpmorgan, best performing financial stocks in this first quarter. what do you do with gains as you look toward q-2? >> i'm still long financials both xlf and morgan stanley. i don't see anything today that's changed my mind fundamentally to get out of financials. we're having a sell-off in the markets. maybe it's because of europe. maybe because of china. those are issues that i already know. as long as the u.s. economy doesn't weaken significantly, which it doesn't appear to be doing, then i'm still okay being long financials. that being said, separate the fundamentals from trading. you have a 75% profit in any stock. i don't care what sector. certainly take some off the table. >> this is what you're going to have to do, right, as a trader as you head into the second quarter. many sectors have sizable gains. you'll have to decide whether you ride that wave or you have to take a little bit off. what do you do with the banks? >> certainly banks have had a nice run. over the last month we saw it broaden out. financials up 6% as a group. xlf. they have