The Plunge Protection Team at Work...Again

This is an example of how the Plunge Protection Team works.

The headline screamed, "Citi Is Beyond Repair" and Citigroup closed up a penny, and then another 48 cents today.  Who is it that is investing in Citigroup?  Shills of the Federal Reserve and the Plunge Protection Team, who have been going nuts with the printing presses and flooding the market with bizarre trades that  contradict every economic indicator.

Banking analyst Meredith Whitney blasted Citigroup's turnaround plan yesterday, saying the financial giant is so deep in a black hole that even renown physicist Stephen Hawking could not help the ailing company.

 

"We wish [Citi's] management team all the best in their ambitious endeavors, but we fear [it] is past the point of fixing," quipped the Oppenheimer analyst known for her forecast that the company would slash its dividend.

The biting remarks, in the form of a research note to clients, came on the heels of Citi's long-awaited turnaround plan, unveiled by the bank's executive team on Friday.

In a nearly four-hour presentation with investors and analysts, CEO Vikram Pandit said the bank aims to get rid of $400 billion in noncore assets but otherwise rejected calls to boost the stock by spinning off units.