On his CNBC TV show today, Larry Kudlow congratulated Citigroup for raising $3 billion in a common stock offering. However, he neglected to mention why Citi needs the money.
Earlier in the day, the Wall Street Journal reported that Citi had two internal hedge funds lose 75% of their value – hundreds of millions of dollars, maybe more.
Even worse, the WSJ reported that Citi pitched the funds to retail investors as ideal for a conservative retirement strategy. And those investors are now suing Citi. Today, Jim Cramer called for an SEC investigation of Citi, while Larry Kudlow complimented Citi.
Note to Kudlow’s loved ones: It’s time for an intervention. Larry can’t be left to run around lose during an election year any more.