Citi Trading Below Book

Citigroup stock fell below book value yesterday – which is either despite or because of a long series of write-downs which served to lower that very value. Citi’s market capitalization is now $115 billion, which compares to, say, $177 billion for Johnson & Johnson. More to the point, Citigroup has just two thirds of the value of Bank of America, and only 87% of the value of JP Morgan Chase. I’m not saying it’s a buy at these levels, but I am having difficulty seeing a scenario where Bank of America maintains that kind of lead over the long term.