Shareholders in Citigroup (NYSE: C ) are reeling from yet another hit to its ongoing recovery. The Wall Street Journal reported this week that the bank is telling shareholders that it will likely miss an important self-imposed profitability target.
Although reports like this aren't unusual on Wall Street, negative news is starting to accumulate at the nation's third largest bank by assets. On March 26, the Federal Reserve rejected Citigroup's request to increase its dividend and share buyback program. And on Monday of this week, the bank said its first-quarter earnings took a $100 million hit from a legal settlement related to the sale of mortgage-backed securities.
Will these issues cause Citigroup's shares to drop when the bank reports earnings next week? In the following video, Motley Fool contributor John Maxfield explains why he doesn't think this is the case -- though, at the current rate, something else could come along in the meantime that might.
Big banking's little $20.8 trillion secret
There's a brand-new company that's revolutionizing banking, and is poised to kill the hated traditional brick-and-mortar banks. That's bad for the likes of Citigroup, but great for investors. And amazingly, despite its rapid growth, this company is still flying under Wall Street's radar. To learn about about this company, click here to access our new special free report.