While Citi analysts are downgrading stocks based on information from right-wing astroturf campaigns, Citi executives found a way to make a quick buck:
Four Citigroup Inc. executives who bought the bank’s stock last week generated a $2.2 million paper profit within nine days, regulatory filings show.
The executives, including director Roberto Hernandez, benefited as the company’s stock climbed 47 percent from March 10 through yesterday’s close of markets, after Chief Executive Officer Vikram Pandit said in a memo that the bank is having the best quarter since 2007. Their buying spree was the first by bank insiders since Jan. 14, filings show.
“You’re supposed to buy when everyone else is selling,” said Bruce Foerster, a former Lehman Brothers Holdings Inc. managing director who now runs South Beach Capital Markets in Miami. Banks have internal systems to monitor executive trades and prevent abuses, he said.
I’m sure it is just a coincidence they bought a bunch of their own stock before they released a positive earnings report that caused their stock price to jump from 1.05 to 1.67.
Pure coincidence.