Just a couple of days after I heard that rumor on the Philippine operation of Citibank, today’s financial newswires are outlining the unfavorable situation of Citigroup.
The Financial Times, Bloomberg, and Reuters articles today are writing that Citi’s top brass are mulling “options” for their business following the dramatic slide of Citi shares in recent days. Serious actions reportedly being considered by management include further job cuts, potential mergers, and fire sale of assets.
The likelihood of a government bailout by the US was one of the items mentioned by the news, as Reuters writes:
Citigroup “will get bailed out, and that’s another unfortunate strain on the U.S. government,” said Saj Karim, an investment adviser at Cannacord Capital in Waterloo, Ontario.
News of Citigroup’s woes is simply the most recent in a series of events which include the bailout request by the US Big 3 automakers (GM, Ford, and Chrysler) and the bailout of large financial institutions such as AIG in the wake of the financial crisis following the burst of the housing and mortgage bubble.
I personally wonder how many more popular names will get dragged into the news as the US economic recession gets underway. Really very interesting times.