Former Citigroup CEO Weill Says Shares of Bank Are ‘Very Cheap’by
He cites discount compared to book value of the firm
Blasts politicians who criticize banks to score points
Citigroup Inc. shares are a good buy, and Chief Executive Officer Michael Corbat has been successful in turning the company around, former CEO Sandy Weill said.
“Mike Corbat is doing a terrific job, and I think the stock is really very, very cheap at a major discount to book value, or tangible book value,” Weill, who held the top post at New York-based Citigroup until 2003, said in an interview Tuesday on CNBC. “With patience people are going to do very well, hopefully, with the banking stock.”
Citigroup shares, which have dropped 9 percent this year, rose 0.9 percent to $47.10 at 4 p.m. in New York.
Weill said it was counterproductive for U.S. politicians to constantly criticize the banks to score points with voters.
“Hopefully that ends when the campaign ends, because the banking system is really incredibly important to the vibrancy and future of our economy,” he said.
Weill and his wife, Joan, gave $185 million to the University of California at San Francisco to set up an institute for neuroscience research, a record donation for the school, according to a statement Tuesday.