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Citigroup Model of GBS Relationship
Citigroup Model of GBS Relationship
GBS relationship
Group No. 8
Abhishek Mudgal - 238
History
1998Citicorp + travellers = Citigroup
1st modern American universal bank (comprehensive banking,
securities, insurance services)
Superior ability to withstand financial shocks due to broadly
diversified activities
Bold Statements
Downfall
On November 17, 2008, Citigroup announced plans for about
52,000 new job cuts, resulting from four quarters of
consecutive losses and reports that it was unlikely to be in
profit again before 2010. The same day on Wall Street markets
responded, with shares falling and dropping the company's
market capitalization to $6 billion, down from $300 billion two
years prior.
Federal government injected $45 billion of new capital into
the bank and provided the bank with $500 billion of additional
help in the form of asset guarantees, debt guarantees and
liquidity assistance.
Blot of Shame
Citigroups Involvement with Enron and
WorldCom
Citigroups Tainted Research Advice and
Spinning
European Bond Trading (DR. Evil) and Japanese
Private Banking
Conclusion
As can be seen in case study research there was dominance of
business and government in citigroup since its inception which
were working hand in hand for their gain and some powerful
people personalities influenced working of the organization.
So, we conclude that dominance model of GBS relationship
applies in citigroup.