Can Citigroup Make A Comeback?

Recently Citigroup, the country’s largest bank, has been making headlines. Unfortunately, the headlines about the financial giant are anything but flattering. It seems that after almost a decade of gobbling up market share and withstanding tumultuous conditions, the company is undergoing an internal makeover that will either save the organization from its ever increasing woes or plunge it deeper into fiscal chaos.

Following the resignation of the most recent head of Citigroup, the Board has picked two virtually untested executives, with somewhat narrowly focused financial experience, to share the leadership responsibilities of the conglomerate. One executive will hold the Chairman position and the other will serve as Chef Executive. This is a different strategy for Citigroup considering the outgoing principal was the Chairman and Chief Executive. 

This change in strategy is surprising to many financial analysts, who question whether these businessmen have the experience and skill to reposition Citigroup for growth. I agree, the change in direction is risky, but I applaud Citigroup’s Board for taking the risk. Historically, Citigroup’s leaders had experience running large institutions, yet the company’s stock showed no sustained growth over the last few years with major losses in recent months. This certainly indicates it is time for a different approach to growth.

As I read about Citigroup I’m reminded that even industry leaders are subject to the consequences of exponential growth, economic turnarounds and market shifts. Yet, I’m excited to see a Board that is willing to make unpopular choices in an effort to stop the organizational bleeding. The two men chosen to lead Citigroup may not have what it takes to turn the business around but if they can sustain even marginal growth, they may be ahead of the outgoing Chairman and Chief Executive who resigned after announcing at least $18 billion in write-downs. 

 What do you think, we want to hear from you?