Citigroup Cuts Unwanted Assets; Should Benefit Shareholders
“People shouldn’t want us to be everything to everyone,” Citigroup, Inc.’s (NYSE:C) Chief Executive Officer, Michael Corbat offered this advice in an interview with Bloomberg television. The bank cut down its unwanted assets 25 percent last year and should no longer be expected to offer unlimited financial services. “We’ve gone through a pretty significant transformation,” Corbat continued in the interview; “we’ve got the right business mix.”
The 53-year-old took over for the company’s ousted former CEO Vikram Pandit, who expanded Citigroup’s operations into emerging markets before being removed by directors in 2012.
Corbat has been utilizing an opposing strategy to Pandit’s; like many global banks, he’s spent the past few years, in the wake of Pandit’s leadership, selling assets, laying off staff, and exiting markets (the company exited five consumer businesses last year), strategies that will help the company to meet stricter regulatory standards and benefit investors.
Corbat expressed confidence in the company’s recent cutbacks that, “The world’s becoming a better place and again it is up to us to make sure we’re doing the right things,” he said to Bloomberg. “We’ve got the resources: we’ve built the capital, we have liquidity.”