I had to write this because it is of great concern to the banking world. The bank I work for in New York was under discussions to be acquired by Citibank at some point. How Citigroup evolves or attacks the mess they are in is going to have great consequences. How the Feds respond to Citibank is of greater importance.
Citibank as you may know is on the brink of collapse after 4 years of having the philosophy that they are "too big to fail". Robert Rubin, a man of significant importance to the strategy Citigroup had taken for its demise, is also an advisor on the Obama team. Right now the Feds are negotiating terms of stabilizing the stock price after outcries from investors that CEO Pandit is not doing enough. Pandit contends that all the 'numbers' are right and there is nothing to fear, but those numbers had been right for the last 4 years as well. In short, no one believes him or shareholder Prince Talal who has publicly stated that Citigroup is 'drastically' undervalued. So undervalued that the Prince Talal increased his stake to 5% but not beyond.
Citigroup just decided to lay off 52,000 employees worldwide. Most of the cuts were from New York and London. And I am sure that my job would be at great risk if my employer was timely acquired. But amongst the Asian layoffs 300 are from Singapore and 1000 are from India. If such drastic cuts are being made regionally and the organization has planned to cut 20% of its costs, I have doubts about the existence of Citigroup Bangladesh.
Citibank Bangladesh might be cut out at a time when HSBC and Standard Chartered are aggressively expanding into this market termed by
It has come to my attention that Citibank Bangladesh has hosted a "micro-credit" award ceremony amongst a media frenzy. Yunus wasn't there because Citibank didn't want to deal with a 'higher than thou' attitude. From sources at that event, Citibank NA staff were visibly depressed at a hyped media event. But what does a bank that is associated with all the Fortune 500 companies have in common with micro-credit? Nothing. This summarizes Citigroup for the last four years of existence. Nothing made cohesive sense. Bigger risks doesn't always mean bigger profits. How else does a $300 billion juggernaut become a $20 billion bargain bin company?