Citigroup Inc tried to calm employees’ concerns on Friday by saying it planned to keep its Smith Barney brokerage and that they shouldn’t worry about the stock price.
As Citi’s shares fell for the fifth consecutive day, Chief Executive Vikram Pandit tried to downplay speculation the banking giant might sell major businesses to restore its health and investor confidence.
Pandit told employees they should not focus on the bank’s falling share price because that is not what regulators and credit rating agencies worry about, according to two people who heard him speak.
His advice might prove tough to follow. In midday trading, the shares were down 69 cents, or 14.7 percent, at $4.02, after hitting a record low of $3.58 earlier in the day. They closed at $9.52 a week ago.
Citi may not want to shed Smith Barney, but it still is looking at options such as a merger with another company or sale of parts of the company. That’s enough to make employees fret, on top of Citi’s plan to cut 52,000 jobs by early next year.
Plus, concerns are rising that the negative news surrounding Citi could prompt customers or trading partners to flee.
(Additional reporting by Dan Wilchins and Jonathan Stempel)
(Photo, of Pandit in happier times, at a Reuters Summit)
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5 comments so far
Sounds like the dismemberment Citi planned for Wachovia
- Posted by NWA10000may be in store for them. Alas, they couldn’t get deposits for practically nothing at Wachovia shareholders’ expense. What comes around goes around.
Pandit and his top lieutenants, such as john havens, shall pay attention to the share price of Citigroup and shall back the truck to load up the shares to shore up the confidence.
Even if they do, there is no assurance that the confidence can be restored. But if they don’t, watch out.
- Posted by VaughnYou gotta be kidding me; is the best statement management can come up with to shore up confidence; the stock price will soon be zero if management does not do something; we have problem with the people in leadership position on all levels corporate and government. These peolpe are overrated and overpaid. Pandit should be replaced Monday morning for making such statements.
- Posted by anthony irbyI have not heard any of the executives of any of the banks that have received TARP money volunteer to take their annual bonus in company stock, with a 3-5 year vesting period. That would do a lot to restore confidence in the companies.
- Posted by SAK100Pay no attention to the man behind the desk.
- Posted by MaudeBefore the turkey is carved, so to will CITI.