Guardians of Grail

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At the center of the financial turmoil was the recent transfer of Citibank, its third quarter profit of 2.2 billion, well above last year s 101 million.

Although compared with other banks, Citigroup s three quarterly not excellent, but still beat analysts expectations. The fixed income trading department is still in steady state, and with further improvement in credit conditions, Citigroup also announced a 20 billion dollars in loan loss reserves.

Banks should have a bank

In this crisis, Citigroup and other Wall Street big banks in the subprime [link widoczny dla zalogowanych] mortgage [link widoczny dla zalogowanych] derivatives market Tangong as aggressive, eventually leading to huge losses. Citigroup because [link widoczny dla zalogowanych] it is huge, the situation is more difficult than other banks.

Citigroup had predicted the crisis because in one fell swoop famous analyst Meredith Whitney Citi commented: This is a never a complete integration of the company, and the [link widoczny dla zalogowanych] company has never been invested in the integration . Even after leaving the former CEO of Prussia, United States had intended to hire at the New York Stock Exchange CEO John Thain as the new CEO, but Thain said, do not know who has the ability to solve the problems Citigroup. It is obvious [link widoczny dla zalogowanych] that the grave problem of Citigroup, in a very long period of time, Citigroup is relying on government assistance $ 4,500,000,000 a living, the pace of recovery is far behind [link widoczny dla zalogowanych] other Wall Street banks.

The new CEO Pandit from the date of taking office, decided to [link widoczny dla zalogowanych] break the United [link widoczny dla zalogowanych] States giant type of structure, the United States into a smaller, but more cautious, more flexible company. The new strategy is to focus on Citigroup s traditional strengths, while the others continue to lose money in the sector to gradually sell or close down.

January 16, 2009, Citigroup announced that the company split into two parts, Citicorp and Citi Holdings, operate [link widoczny dla zalogowanych] by different management teams. This means that Pandit, Citigroup s strong business will be spun off. Meanwhile, the two parts will report earnings, so investors will focus on the United States to [link widoczny dla zalogowanych] run on a healthier business. Citicorp centralized core banking business of Citigroup, and Citigroup wants to sell Citi [link widoczny dla zalogowanych] Holdings will be the departments together.

December 2009, Citigroup announced a series of initiatives to raise funds from private investors, the government in the United States have converted 250 billion of its shares, hoping to repay the government the remaining 20 billion U.S. dollars aid, get rid of the federal government s funding and control. However, Citigroup s financial markets at that time misjudgment, although it is in the stock market to raise 205 billion, but the sale is very bad, Treasury officials decided not to [link widoczny dla zalogowanych] withdraw the shares in the United States.

March 4, 2010, Pandit told the Congress monitoring team, he is gradually split Citigroup, sold 40 of the company s business, control over risk management department. At the hearing, Pandit said: I do believe that banks should be the banks. During this period, Citigroup has been trying to sell many of the remaining investment funds, and removed some of the proprietary trading business further contraction up to the core banking business. Subsequently, the Treasury announced plans in 2010 to 7.7 billion of Citigroup common stock sold decreased 27 stake held by Citigroup.

April 2010, Citigroup agreed to a 42 billion hedge fund sector to sell SkyBridge Capital. To [link widoczny dla zalogowanych] the third quarter of 2010, Pandit, Citigroup s almost difficult to deal with assets and more than half of non core businesses, sold more than 406 billion U.S. dollars in assets.

June 2010, Citigroup announced it would close 330 branches and to actively belong to these branches of CitiFinancial find a buyer.

After these large scale restructuring, Citigroup in the first quarter of 2010 and unexpectedly improved earnings have reached 4.4 billion, net income from 2009 to 245 billion U.S. dollars to 25.4 billion U.S. dollars. Which has the most difficult mortgage and credit card assets, Citi Holdings lost $ [link widoczny dla zalogowanych] 876,000,000, while its core business of Citicorp profit of 5.2 billion. 2.2 billion in the third quarter [link widoczny dla zalogowanych] earnings more than expected.