Signs and countersigns that Citigroup is becoming the next Goldman Sachs

While Goldman Sachs bankers squirm and obfuscate behind the dais, Citigroup's great leader appears to have discovered the appropriate tone of grateful contrition.

Fresh from expressing the "great debt of gratitude" that Citigroup owes the American people, Pandit has now obligingly penned a letter to Obama declaring his support for financial reform.

Something seems to be working. So far this year, Citigroup's stock has risen 34%. BofA's is up 17%; JPMorgan's is up 3%; Goldman is down 9%.

Equally encouragingly (although possibly not for the share price in the short term) the US government is moving to sell its 27% stake in Citi, starting very soon.

US banking analyst Dick Bove, thinks now's the time for Citi to start growing its investment banking business again.

In London, recruiters say Citi's hiring intentions cover FIG, equity research, equity sales and trading, and commodities. Elsewhere, it planning to expand its investment banking business in Poland and to open in Saudi Arabia.

Countersigns

However, before rushing to join Citigroup, it's worth heeding the blotches on its report card.

These include the fact that net first quarter profits in the securities and banking arm were not quite half their level of a year ago. Net profits at Goldman Sachs were up 90%.

Citigroup also appears to be losing out in all key market areas.

Based on the 1Q results from Goldman, Morgan Stanley, JPMorgan, BofA, Deutsche, and Credit Suisse, its global share of fixed income sales and trading revenues has fallen from 28% to 16%. In equities sales and trading, it share is down from 17% to 12%. And in investment banking it's down from 17% to 14%.

In fixed income, the reduction in share can be partially attributed to the sale of Phibro. However, this excuse doesn't play for other areas, suggesting that for all Pandit's pandering, Citigroup isn't become the next Goldman Sachs after all.