Citigroup

Introduction

Citigroup is one of the most well known financial companies in the world. The company has been one of the pioneers of the business financial world. They have contributed in many contemporary ways in the use of banks, and many other financial systems. Citigroup was a representation of the financial market success of the United States, Wall Street, and the financial world. The company has more than 200 years of history, and had been receiving high credibility from worldwide customers. However, after the company’s merger of Citicorp and Travelers Insurance the company was put under new management. Following their boss’ lead, the corporation began to make decisions that were only made with the best interest of the maximization of Citigroup’s profits in mind. This eventually led to the Recession of 2008 and a very rocky road for Citigroup. The company’s actions were similar to that of Netbank, but the end results of the companies differed due to Citigroup’s size. The financial crisis of Citigroup could have been avoided had the necessary precautions been taken, had these provisions been taken it could have possibly helped to avoid the economic recession of the United States as well.

Company History

Citigroup was established on October 9th, 1998, by a merger of with Travelers Insurance, which made the company the largest financial institution. City Bank of New York was the predecessor of the Citigroup, which was established in 1812. Their headquarters is located in Manhattan, New York. Before the merger, Citigroup was called as Citicorp; the predecessor of the Citicorp was City Bank of New York and First National Bank of the City of New York. The very first business was started after receiving the license from New York...

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...he global economy and its people. Rapid profit maximization and expansion has a great risk when trying to make a company as competitive as it can be. If done correctly a company can be reward nicely for the risk, however in this case, companies such as Citigroup and Netbank failed to see how much growth was occurring and started to run a deficit. This deficit eventually led to the downfall and bankruptcy of many companies. This however can translate into a learning experience for those companies who did survive the recession. Companies now should now have somewhat of an idea on how to prevent such occurrence again. With learning comes experience, experience in such an experience will help guide a company during the tough times. Thus, though the times were bad during the recession, the knowledge gained from the recession should be remembered and applied when needed.