Citigroup (NYSE:C) was planning to open 100 branches a year for the next several years. Now, it is reversing course and will close some of its newer branches. It needs to save money and finds that, in some regions, it cannot compete with the locals. According to The Wall Street Journal, "Citigroup will focus on several large U.S. metropolitan areas where its market share of deposits is strong or growing, including Boston, Miami, New York City and San Francisco."
If a Citi customer happens to be in one of those metro areas, things may be fine. If a client of the bank is in one of the areas where the bank is "downsizing" it could be a problem.
The decision is an indication that Citi may even be willing to let some customers go to other banks if it cannot support the infrastructure to serve them. It is a sharp reversal of the visions of Sandy Weill, Citi's former brains and CEO. He wanted Citi to be central to the lives of consumer and retailer customers all over the world and to be the banker to every business from Bombay to Boston.
But, Sandy is gone now, and so is the vision.
Douglas A. McIntyre is an editor at 247wallst.com.
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Reader Comments (Page 1 of 1)
1-24-2008 @ 7:22AM
pat said...
Sandy isnt really gone. His ego and the problems it caused is still being and will continue to be felt by citi corp for years and years.