Citigroup’s management window dressing
It could be that the bank is simply too large, and only disposals can change the culture. But the recent changes are, to date at least, a missed opportunity.
Reorganization of senior management and capital markets business is a missed opportunity.
Citigroup demands a much greater degree of attention than almost any other financial institution. At times, Chuck Prince must wish it didn’t. But such scrutiny is justified.
Why? First, because of what Citigroup was meant to become. Go back to the start of the decade and Sandy Weill’s vision of the world’s financial supermarket had everyone trembling. The unstoppable force that Citi would surely become struck fear in the hearts of other bank CEOs and changed the banking landscape. Would JPMorgan/Chase/BankOne exist today if it hadn’t been for the threat of Citigroup?
Of course the reality has been somewhat different. And the main reason for the level of scrutiny of Citigroup is that its share price hasn’t moved for five years, despite a period of unprecedented growth and profitability for the financial markets.