Unless you’ve beeen living in a cave, you know that Citigroup is not doing so well. With the stock price crashing from $50 to less than $1 at the lows, Citigroup needed multiple government bailouts in order to stay in business. Two years ago, it would be hard to imagine that the once biggest bank in the world in terms of market cap is struggling so much but nowadays, it’s difficult to think that Citigroup will survive on its own.
Vikram Pandit, the CEO of Citigroup is taking a ton of heat because of the state of the bank. While most of the decisions that got the firm into this mess was made before he came onboard, Pandit definitely could’ve made swift action to deleverage the bank and save the financial institiution. Years later and $45 billion of government bailout, Vikram Pandit is still at the helm.
In today’s annual shareholder meeting, Pandit told everyone “I intend to see this through”, suggesting that he is not going to resign. However, with the government stress test looming and more bailout money a possibility, the choice of staying may not be up to him.
Hopefully, Citigroup shareholders will gain back some of the 90% shareholder value that they’ve lost in the coming months and years. We can just hope.
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