Restructuring Citigroup: The Bank in Trouble


Restructuring Citigroup: The Bank in Trouble
Case Code: BSTR330
Case Length: 19 Pages
Period: 2000-2009
Pub Date: 2009
Teaching Note: Not Available
 Price: Rs.300
Organization: Citigroup
Industry: Banking & Financial Services
Countries: US
Themes: Business Restructuring, Financial Restructuring, Risk Management
Restructuring Citigroup: The Bank in Trouble
Abstract Case Intro 1 Case Intro 2 Excerpts

Abstract

The case examines the financial problems faced by the US based Citigroup in the fiscal 2008 due to the sub-prime crisis and the restructuring measures taken by its CEO Vikram Pandit to revive the bank and make it profitable. It discusses the reasons for the rapid growth of Citigroup since the early 2000s under its earlier CEO Charles Prince. The case highlights how the lack of effective risk management practices and poor integration of acquired companies at Citigroup led the bank into significant problems.

Issues

The case is structured to achieve the following teaching objectives

  • Examine the reasons that led Citigroup into trouble
  • Analyze the efficacy of the measures taken by the CEO Vikram Pandit to bring Citigroup back into profits
  • Understand the importance of proper integration of different business units within an organization
  • Appreciate the importance of effective risk management practices
  • Understand the evolution of sub-prime crisis and its impact on financial institutions like Citigroup

Contents

Keywords

Citigroup, Financial Control Systems, Cultural Issues, Travelers Group, Stanford I. Weill, Charles O. Prince, Credit Crisis, Vikram Pandit, Sub-prime mortgage assets, Restructuring, Re-organizing Business Model, Sub-prime exposure, Acquisitions, Collateral Debt Obligations, Turnaround strategy, Structured Investment Vehicles, Matrix Organizational Structure, Liquidity Management, Capital Purchase Program, Break-up Plan, Bank Stress Tests

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