Skip to main content

Citigroup is planning for breakup in two

After getting a huge pressure from regulators Citigroup’s CEO Mr. Vikram Pandit has decided to divide this banking company into two. Citicorp and Citi Holdings would be the names of the parts. Mr. Pandit told that he believes there is a lot of value in having them (Citicorp and Citi Holdings) focused and also said that they are not in a rush to sell businesses. Mr. Pandit is also agreed to start a joint venture with Morgan Stanley to raise their capital for cover up huge losses in last fourth quarter.

Citigroup’s big loss of 9.8 billion dollars for last quarter and share prices has gone down as low as $1.72 per share. Citigroup would break even on a per share basis according to analysts. Citigroup declared of their big loss for five consecutive quarters and on 16th Jan, 2009 announced that a staggering 25.2 billion dollars in write-offs and losses in both its consumer and investment bank brought its total charges to 90 billion US dollars. The company reported a net loss of 18.72 billion US dollars.

In this situation Mr. Pandit still believes that the Group’s big consumer business was bending the curve on losses. He said the overall company will emerge smarter and stronger from the current environment.

Citigroup will legally remain intact for now. But by segmenting Citigroup into Citicorp and Citi Holdings, run by separate managers, Mr. Pandit may be setting the stage for a spin-off of Citigroup’s stronger operations or an eventual merger. It posted US $5.6 billion in revenue, down 13 percent from the comparable quarter a year earlier, which the company said was a reflection of the difficult economic environment and weak capital markets.


Popular posts from this blog

4 Things You Need to Know Before Applying for Payday Loans

 Money keeps life worth living. This is because on certain occasions we are short of cash and our life becomes miserable. You have to pay for the refrigerator that broke down the night before. The repairman demands a down payment of $200 to put the focal point of your kitchen back into working order. This is where Payday Loans help you out. Get in touch with the Payday Locker to get the loan process started. Fact #1 People with a job will get a loan The payday loan is a short-term unsecured loan for employed people. We call it unsecured because they do not ask for any deposit or security to give you the loan. It is short-term because they will give the money within the day and the borrower will pay back the money within 15 days. And, it is a loan for people who have a job. If you don't have a job, they will not give you the loan. Fact #2 Payday Locker does not give a loan The payday locker is a service provider but they will not give you money. You will contact them to get the Cash

Apartment owners beware: building insurance stops at your apartment door

Buying a new apartment can be exciting, and with all the emotion and upheaval of moving into a new place, it can be easy to overlook (or even be unaware of) the need to make sure you’re properly insured. The problem is, this oversight is often not realised until it’s all too late. The sad fact is, many people don’t even realise they need their own insurance when buying into a condo or co-op, and assume that their building’s insurance covers everything. It doesn’t. That’s why it is important when you’re buying a new apartment, to know what is covered by the building owners’ insurance and what you need to get cover for personally. There is a checklist at Flex Insurance . Of course, you also need to know what kind of ownership you have over your unit, so let’s look at that first. Condo or Co-op - what difference does it make? Quite a big difference actually. Firstly, you don’t want to be under-insured. But at the same time, you don’t want to be paying twice for insurance cover

Advice On Cutting Down On Travel Costs

Next to rent or a mortgage, travel costs are likely to be the biggest outgoing for most working people. With fuel costs rocketing, pushing up the price at the pump and on public transport, the key question is how to make every penny count when it comes to travel. The best money-saving ideas aren’t rocket science, but often the simplest solutions are staring us in the face. So here are 5 quick tips to help you cut down on your travel costs.