“All three of those banks have failed to create value for every year for the last eight years,” the analyst said Friday in an interview on Bloomberg Radio. “So our question for the board of directors is, ‘If you’re not getting it done, what is your plan B?’"
Bloomberg News reports that Citigroup and Comerica both hold their annual meetings on Tuesday. Citigroup is facing a shareholder proposal that would require the firm to analyze a breakup of the company and then report those findings to investors, a suggestion that Mayo favours. Bank of America’s annual meeting is on Wednesday.
While Citigroup is a much safer company than it was before the financial crisis, it still isn’t generating returns above its cost of capital, Mayo said. One option would be for the company to sell its Mexican bank, Mayo said. Comerica should consider selling itself outright, according to Mayo.
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