The President of the World’s biggest bank is president no more.
Charles Prince, the chairman and chief executive of the world's biggest bank, Citigroup tendered his retirement notice on Sunday, after a week which saw the stock in his bank drop almost 7 per cent in value.
Citigroup is just one of the many US financial institutions that have begun to suffer due to the sub prime loans crisis in the United States. Citigroup recently advised its shareholders that the bank has reported a 57% drop in quarterly profits, after losses in the sub-prime mortgage market.
Sunday they also declared that the pain would continue this week as they are facing losses of between $8 billion and $11 billion in previously undisclosed losses due to a decrease in the value of its $55 billion portfolio of sub-prime loans. And if their hedge fund maneuvers don’t work out as planned, it was suggested that there could be even more losses to come. That’s an announcement that surely will perk up the ears of investors anxious for the trading day to start on Monday.
Charles Prince, the chairman and chief executive of the world's biggest bank, Citigroup tendered his retirement notice on Sunday, after a week which saw the stock in his bank drop almost 7 per cent in value.
Citigroup is just one of the many US financial institutions that have begun to suffer due to the sub prime loans crisis in the United States. Citigroup recently advised its shareholders that the bank has reported a 57% drop in quarterly profits, after losses in the sub-prime mortgage market.
Sunday they also declared that the pain would continue this week as they are facing losses of between $8 billion and $11 billion in previously undisclosed losses due to a decrease in the value of its $55 billion portfolio of sub-prime loans. And if their hedge fund maneuvers don’t work out as planned, it was suggested that there could be even more losses to come. That’s an announcement that surely will perk up the ears of investors anxious for the trading day to start on Monday.
The departure of Prince marks the second time this week that a high profile banking official has been moved along, earlier in the week the head of Merrill Lynch, Stan O'Neal, resigned after his bank reported heavy losses.
Sunday’s developments set the scene for another wild week on Wall Street which has been providing a roller coaster of results over the last number of weeks.
Prince will be replaced at Citigroup by the former Secretary of the US Treasury, Robert Rubin.
The Citigroup story took an added bit of urgency this week, after CIBC World markets analyst Meredith Whitney downgraded the banking group on Wednesday to a sector under performer. The net result of which saw the stock tumble 6.9 percent during midweek trading.
For her astute analysis of the Citigroup troubles, Whitney is said to have received a number of death threats from disgruntled clients. Bringing to mind shades of Jack Nicholson with that famous movie quote of "you can't handle the truth"!
Apparently it would seem that those with stock in the banking group, don’t appreciate any bad news being broadcast before they can sell their own stocks off!
Sunday’s developments set the scene for another wild week on Wall Street which has been providing a roller coaster of results over the last number of weeks.
Prince will be replaced at Citigroup by the former Secretary of the US Treasury, Robert Rubin.
The Citigroup story took an added bit of urgency this week, after CIBC World markets analyst Meredith Whitney downgraded the banking group on Wednesday to a sector under performer. The net result of which saw the stock tumble 6.9 percent during midweek trading.
For her astute analysis of the Citigroup troubles, Whitney is said to have received a number of death threats from disgruntled clients. Bringing to mind shades of Jack Nicholson with that famous movie quote of "you can't handle the truth"!
Apparently it would seem that those with stock in the banking group, don’t appreciate any bad news being broadcast before they can sell their own stocks off!
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