Citigroup will lead 'destructuring' of the universal concept: Citigroup's crisis may hint at the impossibility of managing every kind of financial business under one roof. (Comment).(Citigroup Inc.)(Brief Article)(Industry Overview)

Banker, The, September, 2002

The crisis at Citigroup is more than just a run of bad luck at a big bank. If Citigroup has lost its way, the greatest piece of deal-making in history -- the creation of Citigroup -- is under threat and with it the entire universal banking concept.

Citigroup is a highly profitable institution, churning out good earnings, but the array of problems confronting it suggest that something is seriously amiss.

The Enron saga, the damage wrought by former star analyst Jack Grubman, problems with the consumer finance franchise and a controversial new management structure: on every front Citi is up against problems. And, because Citi symbolises the universal concept, its difficulties are also those of the model (see p24).

Managing every kind of...

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