WHEN A STOCK SUFFERS A MAJOR BREAK in price, there’s a reason, and very often it’s the beginning of lower prices to come. In almost every case, something is fundamentally wrong with the company’s business or industry. Entering 2008, many of the big banks, including Citigroup, along with their broker-dealer and investing banking cousins such as Lehman Brothers and Bear Stearns, were overleveraged and held deteriorating balance sheets. This toxic cocktail would set up the financial sector for collapse as the overall economy was stunned into a severe recession. From 2007 to 2009, former Dow component American International Group (AIG) crashed from a high of $103 down to a minuscule $0.33. On September 22, 2008, ...

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