User login

Navigation

If you don't see your content, learn more about importing to M&A Help Desk here.
M&A News and Advice
6

Citigroup bent on eliminating all unnecessary costs

http://www.fiercefinance.com –

The New York Times posts a telling memo from John Havens, the head of Citi's institutional clients group about expenses. It's fair to say that the perks bankers once enjoyed are going away. Blackberry purchases now require pre-approval. Citi is also cutting back on management consultants and contractors and the like. Color copying and printing are reserved only for client presentations, which should be double sided. Only computers and other technology that "can be demonstrated to be absolutely critical" will be approved. Market data feeds are being reviewed, but Havens thinks Citi's usage is above industry "best practices." Non-client travel is being scaled back. Citi will crack down on car service and meals. External training will be limited. Get used to it!
For more: - here's the Times item
Related Article:Travel expense controls in place?

Read »
Created by richmeyer 18 weeks 5 days ago – Made popular 18 weeks 5 days ago
Category: Mergers   Tags:

Similar stories

Citigroup (C) Cost Cutters: No Color Copies And, Gasp, Less Use Of BlackBerries 18 weeks 3 days ago
Citi losing the PR war 6 weeks 4 days ago
Yet another Citi hedge fund stumbles 6 weeks 4 days ago
Congressmen criticize credit rating agencies 10 weeks 5 days ago
Citigroup (C) Cost Cutters: No Color Copies And, Gasp, Less Use Of BlackBerries 18 weeks 3 days ago

Citigroup (C) is still hemorraging cash, and the pressure is on CEO Vikram Pandit to reduce costs and get his house in order.
So how does Citi plan to offset the tens of billions of dollars in exposure to commercial real estate and mortgage-backed assets? Simple, cut down on color copies and use both sides of the page when printing memos and presentations.
NYT has the full memo. Excerpts below:

Citi losing the PR war 6 weeks 4 days ago

The news cycle has been exceedingly tough on Citi. Portfolio's pundit offers this: "I think it's time for Pandit to offer his resignation. The task facing Citigroup now is not to build a 'global universal bank'; it's to stay alive. And Pandit has given no indication he's up to that particular job."

Yet another Citi hedge fund stumbles 6 weeks 4 days ago

Recall that one big issue that led to the estrangement between Citi CEO Vikram Pandit and former head of wealth management Sallie Krawcheck was how to deal with "victims" of Citi's hedge funds. Should they be made whole?

Congressmen criticize credit rating agencies 10 weeks 5 days ago

You know a hearing is going bad when a congressman start reading instant messages between two of your employees that goes like this: