Charles Prince, CEO of US biggest bank Citi, resigned from his position as chairman and CEO on Sunday taking the responsibility for the business. He has been CEO of Citigroup for past four years. He has been replaced by Sir Win Bischof as interim CEO and Robert Rubin as chairman of Citi.
Managing an organization of the size of Citi is a very challenging task and Mr. Prince had worked hard to bring all the units of Citi under one umbrella. In the recent past Citigroup has done many mergers and acquisitions. In 1998 it has acquired of Salomon Inc., the successor of Salomon Brothers, the Investment bank which started the Mortgage Based Security (MBO).
Owing to the subprime crisis the rating agencies have downgraded many Collateralized Debt Obligations (CDO) and their mortgage securities. Because of this the valuations of these CDOs have fallen significantly and has impacted almost all banks which had exposure to mortgage based securities. In continuation to its earlier writedowns Citigroup Inc. has recently announced that its sub-prime writedowns may increase further to about $8b - $11b. Citi's total assets are about $2.3 trillion and is the world's largest bank by assets. Citi owns about $55b of subprime mortgage.
According to an estimate the total subprime mortgage based securities outstanding may be more than a trillion dollars.
About Citi:
200 million customer
100 countries
Domain: Consumer banking and credit, Investment banking, Securities brokerage, and Wealth management
Major Brands: Citibank, CitiFinancial, Primerica, Smith Barney, & Banamex
Managing an organization of the size of Citi is a very challenging task and Mr. Prince had worked hard to bring all the units of Citi under one umbrella. In the recent past Citigroup has done many mergers and acquisitions. In 1998 it has acquired of Salomon Inc., the successor of Salomon Brothers, the Investment bank which started the Mortgage Based Security (MBO).
Owing to the subprime crisis the rating agencies have downgraded many Collateralized Debt Obligations (CDO) and their mortgage securities. Because of this the valuations of these CDOs have fallen significantly and has impacted almost all banks which had exposure to mortgage based securities. In continuation to its earlier writedowns Citigroup Inc. has recently announced that its sub-prime writedowns may increase further to about $8b - $11b. Citi's total assets are about $2.3 trillion and is the world's largest bank by assets. Citi owns about $55b of subprime mortgage.
According to an estimate the total subprime mortgage based securities outstanding may be more than a trillion dollars.
About Citi:
200 million customer
100 countries
Domain: Consumer banking and credit, Investment banking, Securities brokerage, and Wealth management
Major Brands: Citibank, CitiFinancial, Primerica, Smith Barney, & Banamex
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