The Rise and Fall of Citigroup

In this video we go over the rise and fall of Citigroup, the fourth largest bank in the US with $1.6 trillion in assets. They were hit hard by the 2008 financial crisis and have been plagued by their bloated international operations which have reduced their efficiency compared to other US banks. Now they are trying to rationalize their operations by divesting the majority of their non-US consumer banking divisions.

0:00 - 1:15 Intro
1:16 - 2:21 Policygenius sponsorship
2:23 - 3:49 Citi founding
3:50 - 5:59 Merger with Travelers Group
6:00 - 7:48 Real estate investments
7:49 - 9:37 2008 financial crisis
9:38 - 10:45 Bailout
10:46 - 13:00 Recovery
13:01 Divestitures

#Wallstreetmillennial #citibank #wallstreet

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Creative Commons — Attribution-ShareAlike 3.0 Unported — CC BY-SA 3.0
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[MithunOnTheNet]

As a Citi customer in India for the past 19 years, I'll miss the ability to withdraw money free of fees at Citibank ATMs whenever I used to travel to SE Asia and Japan :/ Citi India has been sold to Axis Bank.

[NRFEPH]

13:01 - Also in Manila, Philippines. In August 2022, Union Bank of the Philippines (UnionBank) took over Citigroup's Philippine retail banking operations.

[soumyajitbasulive]

I am from India and have both a CITI Bank savings account as well a Credit Card. They are leaving India and selling the entire business to a private player named Axis Bank. So, sad to me. We will miss Citi. We love Citi. Never forget.

[eddie]

Awkwardly watching this… as I work… for citi

[TooLateForIeago]

They absolutely need a more risk-adverse management team, but it's hard to argue with a bank that's below book value, profitable, and a reasonable dividend compared to their sector.

[TBKCC]

As a customer of Citibank for over 20 years, never realized how bad their situation is today. Thanks for this video.

[ericponce]

In 1998, Sandy Weil was viewed as a genius by the powers of Wall Street...time are a lot different now.

[jburron]

First, a 3% interest rate differential is now a low arb rate.

Second, they used CP to buy mortgages and then sold them as CDOs. Made more on that then a simple spread.

[thebeefyguyO]

I am here since 10K subscribers. Such a tremendous growth and always very informative videos.

[edidon]

Up 15% on Citi. 4% of my portofolio. Very cheap and nee CEO is doing amazing and last Q was a huge showcase. This is turnarround story with low risk

[antonomaseapophasis]

You omitted that the Travelers citi mashup was not exactly, technically, actually legal.

[SimonMetin]

Yield book (fixed income analytics) started in Saloman and became a part of Citi. It has the prepayment model pretty much everyone uses in the US. London Stock Exchange acquired Yield Book in 2017 - with the acquisition of Refinitiv in 2020, they are trying to compete against Bloomberg for data and analytics. It would be interesting if you could make a video on the competition in the financial data/analytics space. Bloomberg, London Stoc Exchnage, Blackrock etc. lots of stuff to talk about

[fliu]

I missed the OLD CITIBANK with it's logo. I used to work there in the CITICORP. Centre S.F. Financial District.

[thegray]

Sounds like the story in the movie "Margin Call", even the line about music playing.

[mathieumaticien]

Not a life insurance ad on WSM.... 😫 why god whyyy. At least it's better than masterworks?

[ferraridan]

Look up the Peter Principle and you will probably see a picture of Chuck Prince associated with it. Elevated to a level of total incompetence.

[Viipxz]

I know a guy who used to work for citi and has a lot of stock there because of it. He thinks he’s making a good investment decision because of the 3.78% dividend, but fails to realize that, even with DRIP, he’s getting outperformed in just about every category

[harry]

I work for Citi and they’re selling divisions left and right. Exiting all foreign markets except NA and EU. Makes some sense since they’re the money makers but I don’t know why the exited Asia. Maybe a JPM type of move whose soul focus is US banking? Who knows but Citi is ok, if I go to Chase I’d be making way more than I am. I work in a branch.

[kendellfriend]

They also have numerous fat fingers. They caused a flash crash a few months ago and they also accidentally paid off Revlon’s debt.

[eclipse-xt]

as an Indian working for Citibank as a web developer, life has been so tough dealing with their projects. Global bank my foot, they dont know how to take care of their employees and theres zero WLB