Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Too-big-to-fail Citigroup
So what: American International Group
Now what: The cost of making good on fraudulent mortgages could be higher than expected for Citigroup and many other banks. That would further deplete already weak assets and earnings at a time when it's not clear how banks will make money for real. Fears that the economy is slowing exacerbated the sell-off. Citigroup's reverse split in early May seems have been an accurate signal to dump the stock, which has subsequently underperformed both the S&P 500 index and the SPDR Financial Select Sector ETF
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