Citigroup

Citigroup Citigroup is the world's largest financial institution. A few months ago, Citigroup's stock price fell from $ 53 to about $ 37. Since CEO Chuck Prince was acquired in 2003, Citigroup's stock price has been significantly lower than that of its peers. This reality strengthens the pressure on management (especially Prince) to boost profit. So far, management has ignored the requirement for companies to dismantle themselves to increase shareholder value. Instead, Prince emphasized his plan to help revitalize the growth of the financial giant.

Citigroup showed severe pressure in 2007, but there was a crash in the week of November 17, 2008. On Monday, the company called the city office to meet employees and announced the dismissal of 52,000 workers. On Tuesday, 18th November, Citigroup lost 53% of internal hedge funds within a month and returned $ 17 billion of off-balance sheet assets to the balance sheet. The next day, a law firm insisted that Citigroup saw losing 80% of its value after calling MAT 5 fund "safe" and "safe", which caused unwelcome news It was. On Thursday the principal shareholder Prince Saudi Arabia Walid bin Talal came first to publicly assure that Citigroup is "underestimated" and he was purchasing more shares. The stock price of the next day fell further by 20% and closed the deal at 3.77 dollars. Overall, Citigroup lost 60% of its market value this week, and this year it has lost 87% so far.

Quarterly results released by Citigroup this morning are many nonsense. The story titled "The Citigroup can profit from a significant loss" by the New York Times is quite dubious, but "discovery" is interesting. This is because Citi actually went out and found a way to make it look more profitable. With a revenue conference call, we found a good explanation, that is what Citi did and was abandoned by John Kearney. After the telephone conference, Citi is most likely to negotiate that Citi has raised $ 2.5 billion in revenue when the value of the debt market declines. This is unrealized profit. In other words, Citi does not actually purchase debt. But as it can, it can record accounting revenue. Without this, Citigroup will lose $ 900 million in the current quarter.