Why Citibank Is Crashing Today

Citigroup (NYSE: C  ) is down 2.21% already today. After a solid first-quarter earnings report on Wednesday, it's not entirely clear what's driving shares down today, but poor market reaction to Bank of America's (NYSE: BAC  ) first-quarter earnings report probably isn't helping things.

Big-bank roundup
All the big banks are down today, as well as the markets:

  • B of A is leading the retreat, down a massive 4.76% so far.
  • JPMorgan Chase (NYSE: JPM  ) is also collapsing, down 3.07%.
  • Wells Fargo (NYSE: WFC  ) is even down more than a point: 1.12%

The herd has spoken
B of A reported first-quarter earnings today, which were far better than any investor had the right to hope for, but the market clearly doesn't see it that way. Citi itself reported solid earnings on Wednesday. Investors, again, had every reason to be pleased. And they certainly were: on Wednesday. But not today.

JPMorgan and Wells reported their first-quarter earnings last Friday. There were some signs of trouble for both banks, like shrinking total revenue and a shrinking mortgage business, but overall, the news was very good.

Chances are, all the big banks are just following B of A into the pit of pessimism and despair. There's no other reasonable explanation for all of them to be plummeting Earthward like they are.

The markets are down, too. Throw that on top of everything. Though it's entirely possible the banking sector is dragging the markets down along with it. Call it the chicken-and-egg effect: Which is dragging down the other?

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Read/Post Comments (5) | Recommend This Article (5)

Comments from our Foolish Readers

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  • Report this Comment On April 17, 2013, at 2:14 PM, GhostdogWarrior wrote:

    Because it is one of the worst run companies in America. Once the free money runs out there are gone. Book it

  • Report this Comment On April 17, 2013, at 2:36 PM, luckyagain wrote:

    A correction in the stock market is happening. It hits almost every stock. Some more and some less. So far the DOW is up over 10% since Jan 1st, this type of surge cannot continue. Expecting a 5% correction or more.

  • Report this Comment On April 17, 2013, at 2:59 PM, miteycasey wrote:

    Rational Market theory.

  • Report this Comment On April 17, 2013, at 7:16 PM, quasimodo007 wrote:

    bet the Privilege Cooks of wall street still get Huge bonuses and pay and now TAX free Paid PERKS like their buddies the GOP Congress.

  • Report this Comment On April 17, 2013, at 9:06 PM, ladyofdirt wrote:

    I'M VERY HAPPY TO HEAR CITIBANK IS CRASHING. MAYBE IT'S BECAUSE THEY SELL ALL OR MOST OF THEIR LOANS TO A BANK CALLED SANTANDER CONSUMER USA! LOCATED IN SPAIN. YES, SPAIN. SANTANDER IS BUYING UP HOME LOANS, "DRIVE" AUTO LOANS. IN THE UNITED STATES. THEN REPOSSESSING ANY AND ALL. JUST GOOGLE CITIFINANCE AUTO SANTANDER IS IN THE TITLE! LOOK OUT!!!! BEWARE! READ IT FOR YOURSELF!

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