But there's more pain to come before the endorphins kick in. More institutional outflows are inevitable. And current valuations leave no margin for anything short of an unmitigated success.
From a PR perspective, this may be the right decision. Underwriting the IPO could have exposed Citi to charges of nepotism. But was it a good business decision? And will other of Weill's strong ties lead Citi to walk away from other valuable business?
Provisions will go up if the housing market slumps and this will squeeze profits. Many mortgage banks especially those with insurance arms pay out almost all of their distributable profits as dividends.
Companies are under pressure to sell assets. Banks are desperate to pad out capital ratios. Accelerated share sales provide the means. With $5.7bn raised in Europe in six weeks, equity capital markets desks may not leave this year s bonus round empty handed.
The alleged fraud calls the disclosure and duediligence standards of the assetbacked securities market into question. It is naïve to assume that the problems now mounting at the fringe of ABS market won't eventually show up in the core.
Two of Jack Welch's most senior lieutenants Fiat's Paolo Fresco and Conseco's Gary Wendt are floundering. GE shareholders will be hoping Jeffrey Immelt, the new boss, doesn't make it a trio.
The role CEO Sandy Weill played could destabilize the group. That is because it's not just a gossip story.
Early signs from its acquisitions are encouraging, although the convertible bond issue raises doubts. But how will the alternative investment group perform when conventional markets recover?
But questions remain about the sustainability of its information services income as jobs are cut and financial terminals uprooted. This, combined with any decline in listing fees during the IPO drought, could put pressure on the LSE's valuation.
It s not just investment banks that are cutting back staff. The fund management industry is finally getting serious about cost savings too.