Citigroup Crashes And Burns
After the last quarterly report of Citigroup’s big profit, which, as I pointed out then was a fluke because of a big sale they’d made, Citigroup has fallen back to reality and posted a loss of 3.24 billion yesterday.
Man, I hate gloating, as it looked like I did when they were forced to continue paying loans they had previously agreed to in this area, but the truth is that I haven’t trusted Citigroup for years, even though my mother worked for them in the 90’s. I’ve wondered about their management and some of the sneaky and stupid things they’ve done, like buying Wachovia around the same time they were getting bailout money from the Bush Administration.
At one point this year, Citigroup seemed on the verge of losing their position in the Dow, but rebounded off those false numbers from last quarter. They’re sitting around $4.70 now; I wonder how long that’s going to last.
And how are they losing all this money? Bad credit card deals leading to many defaults, and bad mortgage loans. It’s so bad for Citi that they’re selling off debt to multiple collectors, much of that debt already paid, just to get funds. I know this personally because you wouldn’t believe how many different agencies keep calling me, or were calling me, trying to collect on accounts I had paid off in 2004 and 2005. Anyway, Citi lost $8 billion in loans; if they hadn’t made any profit at all in other areas we’d probably be talking about the immediate collapse of the company.
Once again, another big and powerful banking institution that lost its way, and is struggling in trying to figure out how to get back on track. I think it probably has too many layers to ever figure it all out. Then again, maybe they’ll give me a call. I can’t help them with the detail stuff, but I can certainly help them with their customer base.
Nah; that’d be like selling my soul to the devil. 🙂