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A safer approach to risk.

February 1, 2010 3:29 AM
At the most basic level, banking is all about the balance between risk and reward. And sometimes that balance needs to be adjusted to align with current conditions. Brian Leach, our Chief Risk Officer, has overhauled Citi's approach to risk so that moving forward, we will be one of the safest and most prudent banks in the marketplace.

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For our society to function efficiently, capital needs to flow. But the attendant risk must be better managed. That's why we've strengthened our commitment to responsible finance. We've brought in new risk management leadership. And we've reduced our risky assets by more than half and our overall assets by more than a quarter. Reduced risk means less loss and more money available for the people who need it most - American businesses and individuals who are working so hard to face the challenges of the current economy. The new Citi. Working to be smarter, stronger and to help fuel the recovery.

Comments

06/10/10 10:35 PM Posted by Derrick W.

Citi can help rebuild a new Citi (Citibank and New York City) by lending to small business much, much, more than they are doing now.

05/12/10 3:24 PM Posted by Dan

"as long as the music is playing, you’ve got to get up and dance. We’re still dancing."
-Citi Chief on Buyouts: ‘We’re Still Dancing’, DealBook, July 2007

Exactly how much of that culture has actually changed? You can revamp how you do business, but it's not just Citi that's broken. It's the entire culture and machinery of capitalism. They may be chagrined, but that is only temporary.

Profit through obfuscation. Profit through leveraging the power that money provides. Profit through PR.

Why not profit through generating value? How about that for a change? Sheesh. I'm sick of financial companies that treat business like a giant card trick.

03/18/10 5:53 PM Posted by Joe

I presently hold 2000 s of C and am concernend regarding the large sale of equity held by the Feds in the near future.
What effect on the stock do you expect? Thanks.

03/03/10 10:09 AM Posted by Ken

Have you guys ever considered how come Citi kept getting into trouble from 2004 and the Audit Department was totally asleep. Seems you need to revamp and change the Audit group also just like you have changed the Risk Dept. Audit is a second and very critical eye of the Board and the folks in the C-Suite. I hear that in Citi the Auditors merely serve as a holdout place while waiting to jump to the very business group that they are supposed to Audit. Isn't that a huge conflict of interest ? Till you give the Audit Department some teeth (starting with changing the folks at the helm, as it should always start from the top just like in Risk Dept), and some quality knowledgable auditors, perhas even moving folks from the Risk Dept., the Risk Framework at Citi will continue to be very weak.

03/01/10 4:07 PM Posted by deadhead62

It would seems that Citi is managing its risk by not lending. No one in small business or owner of commercial real estate in the NYC metro area can get any lending approved. You can't even submit an application. That is one way to manage risk.

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