In this year we already saw, some of the major fallout of US financial institutions. The year started with Bear Stearn, and by ht mid of year, it already engulfed some of the oldest financial institutions in US, like Lehman Brothers and brokerage firm Meirrill Lynch. But it seems that fallout year is not yet over, and it may be possible that the next bank in the radar can be Mr. Vikram Pandit, run Citigroup.
On friday, Citi stocks on NYSE were trading below 4 $, making its market capitalization somewhere around 20bn$. Though analyst says that it Citigroup financial status is more sound as compare to other failed financial institutions, but somehow, the Citi's current share price doesnot reflect its financial prowess. Overexposure to subprime loans both in the in Mortgage and Credit Cards Lob, really hurt the bank balance sheets.
CEO of Citigroup, Vikram Pandit, and other officials are meeting US fed officials, in order to rescue Citigroup, before it will be difficult for them to prevent US economy for the Worst Financial Crisis. I hope Mr. Pandit will certainly find a solution, so as to make Wall Street cherish on coming Thanks' Giving.
Thanks&Regards,
Mohit Kumar
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