Meredith Whitney on Citigroup

Citigroup is going to have about $24 billion of reserves by the end of the year, to increase their provisions by over seven billion dollars year on year. Sovereign wealth funds may provide fresh capital but at a price. It could get progressively more difficult this year and certainly more expensive to raise capital. There are going to be so many financial institutions with their hands out this year and Europe has not yet to begun to raise capital the way the U.S. institutions have. Citigroup will look very different. They never integrated any of their acquisitions and they never invested in technology. I question what's the purpose of having all that together and then most obviously, the investment required to keep all those parts together. Vikram Pandit (Citigroup's new chief executive) was well-respected at Morgan Stanley, but he does not have any consumer finance background, experience. He may be capable and may have a well respected track record, he is in unchartered territory in terms of this role.