This article from Business Week talks about the new rise in prices of stocks of Citibank. The CEO Vikram Pandit, sent out a memo yesterday that caused the stock to raise from $1 to $1.44 today. This memo said that these first 2 months of 2009 have been profitable and had the best performance since the last quarter of 2007. He continues with saying the bank is adequately capitalized and has passed stringent self-imposed stress tests. This is great news as Gary Hager of Integrated Wealth Management in Edison, N.J. said, "I think the plan will work and they will lead the business out of this by the end of 2009; it's a screaming buy." He thinks that Citibank will be a "poster child" for other banks to follow to get out of the situation they are today. Some economist say the recession will finish by the end of this year if others follow in Citibank's footsteps.

Some critics are saying the only way the recession can start to finish is by eliminating the bad asset books many banks like Citibank are carrying. They are saying that all bank stocks might look attractive right now but they are still high-risk because the stock can be up by 50% one minute but down the next minute.

Personally, I believe Citibank's news is the light at the end of the tunnel. This is probably the first piece of good news I read in business since 2007. I do think Citibank has the potential to set the way for other banks to follow, but they are not completely out of harms way yet. They still have a lot of things to do but at least it is a start. I do not agree that the recession will be completely over by the end of 2009, but I do believe it will be much better than at the start.

LINK: http://www.businessweek.com/bwdaily/dnflash/content/mar2009/db20090310_761018_page_2.htm