Regulators’ concern over ‘living will’ restructuring plans reinforces our high uncertainty ratings and lack of enthusiasm for Bank of America, Citigroup, and JPMorgan Chase shares, says Morningstar’s Jim Sinegal.
Among Vikram Pandit's last jobs as Citigroup Inc.'s chief executive officer was to decide the fate of the bank's hedge-fund unit, which employs some of his oldest colleagues. He agreed to give them most of it for free.
One of the leading contenders to be the next chairman of the Federal Reserve, Lawrence Summers, has been a paid consultant to Citigroup and other financial institutions. Opponents of his nomination are sure to seize upon this.