The Wall Street Journal recently reported that a majority of banks have slowed lending at an average of 1.37% from the 3rd to 4th quarter of 2008. Although it may sound scandalous that banks would decrease lending while receiving government funds intended to be loaned out, their actions appear more appropriate when the current state of the economy is considered. The deepening recession has triggered a massive de-leveraging among households, which has dramatically reduced the demand for credit. The
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(1) What are the main driver(s) of the bank’s profit? (loan growth, cost cutting or a release of loss reserves) * Short term driver Slide 6: Firstly, i would like to talk with you about the main drivers of Citigroup’s profitability. Overall, Citigroup Q1 financial performance was an improved net income of $3.0 billion, which is a 4-quarter high. Citigroup revenues in the first quarter 2011 were $19.7 billion, up 7% sequentially, but down 22% from the first quarter 2010 due to lower securities
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Ever since the financial crisis in 2008, Citigroup along with many other major players in the banking industry have and still are currently being faced with numerous changes in regulations. Such as the Dodd-Frank Wall Street Reform and Consumer Protection Act, which seeks to limit the amount of risk that customers can take on. The act also implements strict liquidity, capital, and leverage ratio regulations for all companies in the financial service industry. The impact of this law could make Citi’s
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Mrinal Mardia Content: 1. Introduction - Is Leadership that critical! 2. Need of Hiring Laterals a. Globalization b. Lack of Inner talent recognition c. Volatility – 2008 Crisis. 3. Issues – a. Financial, b. Performance, c. Culture – Leadership Behavior and Employee Engagement. 4. Way Ahead 5. Bibliography Transition
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Lehman Brothers by American Express, which eventually ended with the company changing their title back to Lehman Brothers in 1994. In 1997 Fuld helped drive Lehman through one of the toughest periods of the company’s history: the 1997 Asian Financial Crisis. It was so bad that the company’s share price dropped to $22 USD in 1998. Also in 1997, Fuld was rapidly moving his company from fixed income towards focusing more on investments in high-margin businesses like mergers and acquisitions
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1. Yes there are moral concerns with subprime leading; they are loans lenders provide to those who have been disqualified from borrowing with prime loan companies (Thibodeaux, n.d.). There is a need for them but care must be taken not to take advantage of those individuals that get them. The moral concerns are the fact that predatory lenders seem to target those groups that are vulnerable and in need of housing and money to make ends meet. Let me make this perfectly clear that there is a place for
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ch merill lynch INTRODUCTION About Merrill Lynch: The wealth management division of Bank of America is currently known as Merrill Lynch. It comprises of 15,000 financial advisors and $2.2 trillion in client assets; it is the world's largest brokerage. Earlier the firm was publicly owned and traded on the New York Stock Exchange under the ticker symbol MER. In Brief: In this particular case study we find that Merrill Lynch has introduced a new client relationship technique called the Supernova
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the regulatory framework for banks and to ensure a safe & stable global banking system. • Basel-III urges banks to raise the quality of Capital to absorb unexpected losses, to reduce the chance of another financial crisis. Need arose due to : • The U S sub-prime crisis has highlighted the linkages of the main types of risks, especially Credit, Market & Liquidity risks and since then the need for strengthening the capital regime has emerged prominently. Important Points : ➢ Greater
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Merrill Lynch in Japan Sheila Kennedy MGT/448 Gary Solomon April 4, 2011 Merrill Lynch’s first endeavor to penetrate the market of Japan was unsuccessful because their marketplace was not synchronized to acknowledge international companies. However, in 1997 the situation changed in the World Trade Organization (WTO) contract for enhancing overseas firms to promote financial services to national investors. This was the beginning of a new age in the global market. Previous experience
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Introduction: According to Heskett, 2012, leadership requires many top noch qualities which includes: competence, interpersonal skills, administrative, should be a snooping follower, a virtuous eavesdropper, a quest of veracity, instigator as well as empathizer, no autocraticness etc. But the main delimas that organizations are facing today is how to motivate their employees in order to improve their efficiency which will halp them in sustaining their competative advantage. Teresa M. Amabile and
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