| Citigroup to shed $500 Billion; that "B" for Billion! |
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| Written by Nick Osinski | |
| Saturday, 10 May 2008 04:44 | |
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In today"s financial climate it"s not particularly news to hear that a bank is writing down some assets. When its this scale, however, it tends to grab your attention. Don"t mistake my comments for criticism. I agree with other opinions on the matter that this is the right move for Citi"s new chief, Vikram Pandit. A good rule of thumb for any investor is to limit their focus to only a handful of securities; you really can"t properly monitor more than that and adequate portfolio management is key to long-term success. I see Mr. Pandit"s actions as no different. He"s consolidating. Here"s a good summary of their reasoning for the move form this article: ...Citigroup executives did point out several shortcomings at the bank that need to be fixed, including organizational redundancies, a fractured corporate culture and waning market share in U.S. retail banking. And the company introduced a new slogan as part of its revamping efforts: "Citi never sleeps." It"s funny that people are actually concerned about Citi"s resulting loss of its top-spot as the nation"s bank; who cares! I"m not a shareholder, but if I was I wouldn"t care about its ranking nationally or otherwise; I care about the bottom line. I care about what management"s decisions mean for its earnings and how that will affect equity value. Period.
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