Citigroup Incorporation might still retain the dignity of being the largest financial institution in the United States of America but, there’s little doubt that the bank is spiraling down into disgrace! The resignation of the Citigroup’s CEO Charles Prince comes at a time when the bank is contemplating moves to increase it profits which have gradually been winding down.
Mr. Prince’s departure is neither premature nor unexpected. Citigroup is in its third-quarter turmoil and is planning on some sweeping changes to boost up profits.
Many perceive Prince’s tenure as the Chief Executive Officer of Citigroup as the actual reason for the bank’s meltdown since Mr. Prince spread his concentration on several lines of businesses instead of focusing on one. That in turn helped lower the price of Citigroup’s stocks and its peers took advantage of this defective strategy.
Former U.S. Treasury Secretary Robert E. Rubin will now lead the beleaguered bank and his first major task will be to claw out the financial institution out of Charles Prince’s shadows and march it onto a new era with new plans and ideas.
Once the co-chairman of Goldman, Sachs & Co., Rubin would now shoulder the responsibility to get back Citigroup on track after disastrous consequences of making bad bets on debt. It remains to be seen whether the heavily reliable and reputed financial fortress can indeed recover.
Image Source: Wikipedia
Source: MSNBC
Comments
Too bad for the company. Let us see what can Mr. Rubin do to the Citigroup Incorporation. Maybe he can handle it well and the company will back on the track again. It’s a heavy responsibility for him.
________________________________________
State of Incorporation