We all know Citigroup's name was tarnished during 2008 Financial crisis.
Citigroup reported massive write-downs on its assets, including those related to subprime mortgages and credit derivatives. The bank required multiple rounds of government assistance to stabilize its operations and avoid collapse. Ultimately, Citigroup received a total of $45 billion in capital injections from the U.S. government's Troubled Asset Relief Program (TARP) to bolster its financial position.
Then the Revlon case of $900 million. Citi was pointing to vendors for its mistakes and promised rectifying its problems by hiring more employees compared to vendor consultants.
Now Citi is going in opposite direction with its layoffs. Its still relying on vendors and offshore building. There is no quality or culture. I am deeply worried how Citi is going to tame the upcoming risk factors. I feel like I am already sailing in a sinking ship.
6 replies (most recent on top)
This is what happens when senior citizens run the bank with their old school ways. by Anonymous Post ID: @czih+1slWD4Eo
Post ID: @1txw+1srYF9gY Maybe you're too young to remember how Lehman Brothers went belly up or you've been living in a Cave. It was a venerable company in its day and several hundred years old. Lehman's Laidoff employees got very little or NO Severance because Lehman's creditors were paid first. In other words, anyone who got Severance received only one week for every year of service instead of the standard 2 weeks for every year of service. Once the money ran out, the remaining Svckers got nothing. The Same situation will happen with Citi.
I am very fortunate and like the team I belong to now. I like the work and I like the people I interact with. Unfortunately, I feel as if the company is on its last legs. I think Jane is chopping it up and selling it off in pieces in order to generate money to keep us afloat.
Other than just selling the bank as a whole, there’s only so much you can chop off and sell. I’d like to see us come up with something else. I have no idea what it takes to run a trillion $ bank. Then again I’m not paid 26+ million per year to know either. I’m not the “idea guy”. I’m just the one of the people that makes it happen or support it, on my level, when one is presented….aaaaannnnddd……I wait. Right now its all BAU and watch as we sell of chunks.
Feeling the need to hire consultants to tell the leadership what to do, is concerning. Are they so out of touch that bad that they have no clue what is or is not the excess to cut?
Cutting 300 MD and replacing them with 310 followed by a celebration that you’ve reduced layers?? This is all odd to me.
So, as the stock levels off or dips as the layoff hype ends, what’s next? If there’s nothing innovative to offer, then its more chopping off pieces of the bank and\or layoff more people.
Because I want my severance when it goes belly up!
@enp+1srYF9gY, so why are you still working at Citi and predicting it to fall 🤔?
Citi is a sh---y company with sh---y leadership. They have no idea how to manage the bank and it shows. Citi will probably fail soon and will be split and picked up by the other major US banks.