![]() ![]() Although big, global and aggressive in investment banking, it lacked discipline. It entered the crisis in worse shape than many competitors, still resembling the hastily assembled juggernaut put together by Sandy Weill, a merger-mad former boss. Deposits fund more than a third of its $2.05 trillion of assets, although some rivals have a higher share of assets funded by deposits.īut these are only token comforts compared with the giant challenges that Mr Pandit faces in getting Citi back on a sound course. Citi has also reduced some of its riskiest exposures, which have caused most of the losses over the past year. The sale of assets such as its German retail bank will further strengthen it. Citi's tier-one capital ratio, which measures how well capitalised is its loan book, was a robust 8.2% at the end of the third quarter, or 10.4% if government support under the Troubled Asset Relief Programme is included (Citi was handed $25 billion). Nor did it particularly impress shareholders.Ī few positive notes were sung. Still, that is not the sort of fitness regime many in the bank will celebrate. Some of those job cuts have already been announced. Under a slide buoyantly entitled “Getting Fit-Fast!” he told them that revenues were flat, expenses would tumble by 16-19% next year and headcount would drop to less than 300,000, down from a peak of 375,000 at the end of last year. Staff might have hoped that Mr Pandit would offer a rough guess on when Citi would return to profit, but that was not to be.
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