What We're Hearing

Is Citigroup's stock a "buy"? That's a tough call. Renowned bank analyst Richard Bove said this morning that it could be a $7 stock in a few years. Of late, its shares have been trading in the $3 range but got a boost today after Mr. Bove made some positive comments on CNBC. But anyone who works in mortgages knows that Citigroup is no longer the fierce competitor it once was. Even though it has made some new overtures to loan brokers, its wholesale channel is a fraction of its former self, and according to the new 4Q edition of the Quarterly Data Report, CitiMortgage of O'Fallon, Mo., was the only lender among the top 10 to experience a decline in production. In 4Q the lender's residential volume fell 38% to $11 billion. Everyone else among the top 10 had gains of 16% to 116%. And keep in mind that the fourth quarter of 2008 (the comparable here) was the worst in 10 years. If a lender couldn't manage a gain in 4Q09 (compared to 4Q08), then something is definitely amiss...