Citigroup takes aim at star analyst
Mike Mayo, a well-known name in the bank stock analyst world, has long been an bête noire at Citigroup (NYSE: C).
The latest: The CLSA analyst has angered executives because of his view, which he's hardly shy about, that Citigroup should take a writedown of $50 billion on "deferred-tax assets," or DTAs, which he thinks have inflated profits at the bank by up to $10 billion, according to FOX Business. Mayo also thinks the bank may be violating some securities laws by not doing so. Citi denies the accusation.
In retaliation, "Mayo has been denied one-on-one meetings with top players of the firm, including CEO Vikram Pandit, Chief Financial Officer John Gerspach, and any other member of management, while other analysts enjoy full access to the bank's top executives," reports FOX Business. "In fact, Mayo hasn't had a meeting with Pandit or anyone in Citigroup management since around the time of the financial crisis, in the fall of 2008."
Mayo has clashed with other companies before. But it certainly does not look good for the Citigroup IR folks. They are far better off working with "difficult" analysts than antagonizing them.
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