Citigroup Considers Shrinking Banking Branch Network In U.S. & Canada

September 24, 2009 by · Leave a Comment
Filed under: Industry News 

It is surprising after Citigroup’s bid for Wachovia’s banking business, they are now looking to shrink their retail banking operation.  Usually, this is the “bread & butter” for any banks profits, using customer deposits to make new loans against.  With everyone calling for more loans to help create growth in the worst recession since The Great Depression.  This move seems counter-intuitive but I am not on the inside so there may be other facts that are leading management to this possible decision.  We will have to see how this pans out during Citigroup organizes itself.

Bloomberg, New York – Citigroup Inc. may sell or shut some of its 1,001 branches in the U.S. and Canada as the bank shrinks following last year’s $45 billion federal bailout, a person familiar with the matter said.

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Citigroup shares may be not worthless?

September 15, 2009 by · Leave a Comment
Filed under: Stock Market News 

Well this may be correct, with the amount of losses Citi has written-off and the “assistance” Uncle Sam has extended to them, yes the shares may be have some real value.  I still don’t agree with the bailout and the socializing the losses but it is done now so we have take a look at their value.  Even Jim Cramer called it when it was at $3.75 per share that it was a “buy”. he laid out a case for the purchase of the shares and it pains me to agree with his assessment.  They still have massive derivative exposure so if somehow those are triggered then they would be in serious trouble, unless we bailed them out again.  Could happen, seriously.

DISCLOSURE: I am not a financial advisor and this article or any articles in this website should not be taken as a recommendation to purchase this or any other securities.  Please talk to a registered financial advisor before making any investment decisions.

Reuters, New York – Citigroup Inc is slowly regaining favor among institutional investors, a development that could help the U.S. government unload its 34 percent stake in the still-troubled bank.  A series of bailouts has put taxpayers on the hook for tens of billions of dollars of potential losses, but left Citigroup with some of the strongest capital ratios in banking.

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Citigroup sells three credit card portfolios valued at $1.3 billion

August 31, 2009 by · Leave a Comment
Filed under: Credit News 

Reuters, New York – Citigroup Inc.  said on Monday it sold three credit card portfolios representing $1.3 billion in managed assets, as part of a plan to unload weak businesses and troubled assets that caused huge losses.

The third largest U.S. bank by assets, which did not disclosed the terms of the deals, said it will continue to service the portfolios through the first half of 2010.

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Citigroup replaces CFO and other top management

July 9, 2009 by · Leave a Comment
Filed under: Industry News 

That is a good sign, we need to see these bad actors out of the system as we try to restore confidence.  I believe there are criminal charges to come as well.  There is a very slim chance that will all this bad accounting and off-book transactions, no laws were broken in the process.  I want to see more criminal inquiries and investigations to get to the bottom of this crisis and to set the proper precedence going forward for our next generation of bankers.

News (Reuters):

Citigroup Inc on Thursday announced its biggest management shake-up since the financial crisis began, replacing its chief financial officer and installing a new banking chief as it prepares to give the government a 34 percent equity stake.

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Citigroup Plans to Raise Salaries by as Much as 50% to Offset Bonus Reduction

June 24, 2009 by · Leave a Comment
Filed under: Industry News 

Even though it sound appalling, the U.S. taxpayer vis-a-vi the U.S.  government is now a major stakeholder in Citigroup.  If you take the line of thinking, then we should do what it takes to make this bank profitable so it will be worth the money we have used collectively to provide a bailout and backstop for this bank.  What I would like to see is Citigroup get into some sort of retail banking activities.  That is one thing about CitigroupThat is just me and honestly I have not studied Citigroup’s that is frustrating, we keep bailing this bank out and for its size it should have some retail presence or become a pure investment bank.  You would think banks these days would do normal operations as well as their “other” services.   assets enough to know if that is a realistic suggestion.  Now that I have said this, I will be reviewing it to see just how it makes or loses all its money.

News (Bloomberg):

Citigroup Inc., the U.S. bank that got $45 billion of government funds, will raise base salaries by as much as 50 percent to help compensate for a reduction in annual bonuses, a person familiar with the plan said.

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