Citigroup has seen their stock fall over the last year and many people cite the recession’s particularly hard hit on the financial giant as the cause. However, there are numerous opinions on why Citigroup isn’t improving as quickly as other institutions and the majority of the blame of Citigroup’s current state is either the fact that the government still holds stake in the company or just poor decisions by CEO Vikram Pandit.
There are many investors and analysts who feel that the governmental stake in the company, the stocks that are still being held, are keeping investors from having more faith in the company and giving room for Citigroup’s stock to grow.
Many investors avoid anything with governmental involvement like the plague and many believe that until the Federal Government sells their stock in Citigroup it will hinder their stock and the price will remain low.
Other people feel that the blame should be put on Vikram Pandit, the Citigroup CEO, and many people seem to see his release from Citigroup as only a matter of time.
However, as of late Mr. Pandit has been “trimming” Citigroup down in a variety of ways, most notably selling assets that are said to be useless to the company, and hopes that the new Citigroup will bring about better profits and results by focusing on what is important, profitable, and best for customers and the company.
Among the shareholders and critics of Citigroup, Mr. Pandit is in their sights for blame. Many people believe he’s working to reverse the company’s direction but his past mistakes, like raising credit card rates after receiving a bailout, still follow him, yet can all of Citigroup’s woes be put on their CEO who has been in place for just a little over two years?
Many people would say yes, while others may not be so willing to throw him out.
Among the problems with Citigroup they still are making strides and progress in areas like the home loan modification program, but overall how are they doing?
Is governmental stake in the company or Mr. Pandit to blame for their current state, or is it something else entirely?
