TimesOnline reports that Meredith Whitney, a CIBC analyst, has received death threats. Whitney who is married to the former World Wrestling Entertainment (NYSE: WWE) champion Death Mask, downgraded Citigroup Inc. (NYSE: C) on Thursday -- citing its need to raise a $30 billion capital cushion. Her "underperform" rating of Citigroup helped send its shares down 7% -- leading her to receive several death threats from Citigroup investors.
Whitney married the wrestler Death Mask, also known as John Charles Layfield, 2½ years ago after they met on a TV set. Layfield credits Whitney with helping to make him more sophisticated -- he noted: "She took a country boy like me and kind of refined me. I know what fork to use now at the dinner table, and I drink my beer from a glass." This has not stopped the brave Whitney from earning rave reviews as an analyst -- Forbes ranked her second-best stock picker for 2007.
In a free society, people should be able to express their opinions without fear of bodily harm. For those Citigroup investors who don't like what she wrote, you should be happy that her downgrade may have helped push Citigroup's board to replace Chuck Prince. It remains to be seen whether Prince's replacement can do a better job of boosting its share price.
Peter Cohan is President of Peter S. Cohan & Associates. He also teaches management at Babson College and edits The Cohan Letter. He owns Citigroup stock and has no financial interest in WWE.
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Reader Comments (Page 1 of 1)
11-03-2007 @ 9:33AM
michael schneider said...
People say stuff all the time but the question is whether there is any legitimacy to threats like that. I suspect there isn't much beyond scaring someone which shouldn't be that unusual on Wall Street. You even see threats on some of the message boards and in e-mails on occasion. I do agree with you but I suspect it would be more newsworthy if she didn't receive any threats.
She has been slammed by commentators especially on the remarks about a possible dividend cut which most analysts see as unlikely at this time. Some have called her remarks "piling on" and tantamount to yelling fire in a crowded theater. That's a different issue but as you write she might have helped get a management change there which should at least boost the shares Monday-- Jim Rogers said he would have to cover his short position if they change the management this weekend.
11-03-2007 @ 9:47AM
sonnype said...
It doesn`t take a rocket scientist to know that citi group stock is not a good investment right now since its problems have come to light and if it took an anaylst to tell the morons that threatened her that they shoud not be investing in the market.
11-03-2007 @ 10:36AM
Stan Summerill said...
I have watched Citi while yet CCC (Commercial Credit Corp) since 1967 when I began my 40 plus carrier, I'm steel employeed. It was exciting to see Sandy build what he was best at, a World Wide Empire, along with John Reed. It was there goal to unit as many as possible World Wide, to help those less furtunate financailly. This they did now represented in some 100 plus countries, with those products that really help the working force. I am proud to be apart of such a great team. Yes Sandy may have made some mistakes, but he got the (Premeir Automobile) built. Time came for him to step down, and Mr. Prince took over many difficulties that came with the job at hand. But with his Law Expertise, he manage to keep us (out of jail if you will). Lets give credit where credit is due. Now perhaps it is time for another change, just like time has changed. So we will move ahead with that change, it is my hope and prayer that the right change will come, and along with Mr Crittenden our current CFO, his backgrown, standards, and goals, they will get this company back to where we belong. For those that do not remember, I recal we at $25 a share, with a come back.
11-03-2007 @ 8:26PM
Middat said...
About Citi - or citigroup - almost everyone knew that citi was being managed badly. They are about to report also a big loss in their Turkey operations coupled with losses from London and EMEA..... Their turkish analyst is being optimistic because citi is expanding there ...otherwise the situation there is worse..inflation is increasing.. and citi's cost restructuring announcement in April 2007, a savings of over $2 billion is not true.... it is called cost avoidance..it is not really a cost reduction...They will invest less in technology, less in human capital, less in quality of services..and avoid some billions..that is imaginary..not acutal cost savings...this was coming for citi..most analysts have been saying that the company is being managed badly..their european operations and turkish operations as well as others... now is the time to break it up.. Middat - New York
11-03-2007 @ 10:06PM
G said...
It is time for a major change at Citigroup and I doubt that it will happen! You can change the CEO...which I heartily applaud...but the whole place from the top on down has lost its way. I have many friends that were hurt by this company!
Lose this stock...and lose their credit cards. This company lost its way...years ago! Their losses don't end with the acceptance of the resignation of the CEO! But, more importantly...many of their past customers will never forget the treatment they received at the hands of CITICORP!
Unfortunately in this situation...the PRINCE...gets to leave with all the camels wearing DOLLAR signs!
11-20-2007 @ 1:39PM
Karolus said...
Nobody seems to realise what courage it takes for an analyst in a non-independent house to downgrade a stock such as Citi. In-house and industry pressure to refrain from doing that are immense and most analysts who have a family to raise simply shy away from the idea and remain silent. Meredith has real guts, I wish I was a wrestler, and she has my respect.