Non-TechC (Citigroup)

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From: Shawn Donahue3/22/2006 5:12:34 PM
   of 256
Prince to Succeed Weill As Citigroup Chair
Tuesday March 21, 4:54 pm ET
By Eileen Alt Powell, AP Business Writer
Citigroup Board of Directors Selects Charles Prince to Replace Sanford Weill As Chairman

NEW YORK (AP) -- Citigroup Inc.'s board on Tuesday announced that it has selected Chief Executive Officer Charles Prince to succeed Sanford I. Weill as chairman when he retires April 18 at the annual meeting of the nation's largest financial institution.

Prince will also retain the CEO title.

Prince, 56, succeeded Weill as CEO in October 2003. Weill, who turned 73 last week, has made it known for months that he will retire from the bank's board this year.

The board said in its announcement that Weill will be given the honorary title "chairman emeritus."

Weill has been at the helm of the company since 1998, when he merged his insurance company Travelers Group with Citicorp, as the bank then was known. Citigroup spun off Travelers Property Casualty Corp. in 2002.

Citigroup's shares closed down 18 cents at $47.22 on the New York Stock Exchange.

Alain Belda, Citigroup's lead director, said in a statement announcing the decision to give Weill the "emeritus" title that "Sandy has played a critical role in creating Citigroup, which has become the model of the modern, global financial services company, and has generated superior value for the company's stakeholders."

Belda also said that the decision to name Prince as chairman was unanimous.

Since becoming CEO, Prince "has sharpened Citigroup's strategic focus; created a growth strategy that capitalizes on the company's unique strengths; installed a talented and dedicated leadership team from our deep bench; strengthened internal controls; and focused our people on how they conduct themselves as part of a leading, global institution."

Weill said in the statement that "I am proud of what we have built, and proud of the people who have contributed to making Citigroup the leading global financial services company."

There was no mention of what Weill plans to do next, but last July there were reports that he considered retiring early to start a hedge fund.

Prince, who is a lawyer, has directed day-to-day operations at the bank during a difficult period for Citigroup.

He helped negotiate settlements with regulators and shareholders over the collapse of Enron Corp. and WorldCom Inc. and had to deal with scandals over allegations of illegal bond trading in Europe and irregularities in its private banking operations in Japan. The Japanese eventually forced Citigroup to close the operations.

The Federal Reserve, in an unusual step, last summer barred Citigroup from future acquisitions until it improved its internal management controls.

Since then, Prince has tried to steer a path away from legal and regulatory problems and toward organic growth. Among his actions has been the adoption of a five-point plan to improve the company's ethical performance.

Still, he's lost several top executives. Citibank President Robert B. Willumstad, who was passed over for the CEO job, left the company last year to pursue a top job at another company, and Marge Magner, the widely respected head of global consumer banking, left last August.

Just last week, Citigroup announced that Michael Carpenter, chairman and CEO of Citigroup alternative investments was leaving "to pursue opportunities to create an entrepreneurial venture; Carpenter had been with Weill at Travelers.

In Tuesday's statement, Prince praised Weill for his "vision and dedication."

He added: "I am confident that the plans we are pursuing will enable us to build on his singular record of success. I appreciate the confidence the Board has expressed in me and remain focused on our global growth priorities."

Citigroup has some 200 million customer accounts and does business in more than 100 countries. It had nearly $1.5 trillion in assets at year's end.

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To: Shawn Donahue who wrote (209)3/28/2006 10:26:43 AM
From: Lynn
   of 256
Report: Citigroup Bidding for Turkish Bank
Tuesday March 28, 9:35 am ET
Citigroup May Offer More Than $5 Billion for Turkey's Finansbank, Report Says

NEW YORK (AP) -- Citigroup Inc. is expected to make a bid for Turkey's Finansbank on Tuesday, according to a published report.
The American financial conglomerate could offer more than $5 billion in cash for Finansbank, Turkey's eighth-largest bank by assets, according to The Wall Street Journal, which cited unnamed sources.

Citigroup spokeswoman Leah Johnson said the bank would have no comment on the report.

Finansbank is the subject of an auction run by Morgan Stanley. The only other bidder left is National Bank of Greece. It is expected to submit its bid Tuesday along with Citigroup, the newspaper said.

Citigroup's last major bank deal was the 2004 acquisition of South Korea's KorAm Bank.

Its shares fell 11 cents to $47.53 in early trading on the New York Stock Exchange.

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To: Lynn who wrote (210)3/31/2006 6:27:54 PM
From: Shawn Donahue
   of 256
Turkey Viewed As 'Attractive' Market For Citigroup
Maya Roney, 03.28.06, 11:22 AM ET [Lynn, Thanks for replying
to me on this. I checked and see that Forbes sent me an article
on this too, but I am behind on my reading. Regards, Shawn]

Standard & Poor's Equity Research reiterated a "strong buy" opinion on shares of Citigroup in light of news that the company may submit a bid for Turkey's Finansbank.

"We view Turkey as an attractive, high-growth market where Citigroup (nyse: C - news - people ) can build on its already fundamentally strong and geographically diverse banking business," wrote analyst Mark Hebeka in a research note Tuesday morning.

According to press reports, the potential deal with Finansbank, Turkey's eighth largest bank by assets, is expected to be valued at approximately $5 billion and would represent the largest transaction since Charles Prince became Chief Executive Officer of Citigroup in October 2003.

Hebeka's 2006 and 2007 operating earnings-per-share estimates for Citigroup remain $4.32 and $4.65. The analyst maintained a $55 price target on the stock.

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From: Mark4/3/2006 1:50:16 PM
   of 256
I appreciate the last couple of posts. Thanks folks.

I still believe that C is undervalued. $55 is easily attainable, IMO, and beyond.

Just as a side note, Richard Band, author of the monthly newsletter, Profitable Investing, rates C as a buy at current prices. He has stated that it is good for a 50%+ return over the next 3 years. Mr. Band is usually a conservative investor, so I would expect a greater return if he's right with C.

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From: JakeStraw4/17/2006 9:39:01 AM
   of 256
Citigroup profit rises 4%

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From: JakeStraw3/7/2007 8:09:32 AM
   of 256
From S&P Stock Picks - Citigroup (C)
Maintains 5 STARS (strong buy)

Analysts: Frank Braden, Stuart Plesser

Citigroup announces a tender offer of 1,350 yen for each Nikko Cordial share; a deal valued at up to $10.8 billion. Nikko, Japan's third-largest brokerage by revenue, has been seeking to restructure its business after accounting irregularities were revealed in December. We favor the acquisition, as Nikko's more than 100 Japanese branches would boost Citigroup's presence in Japan and provide a meaningful platform for it from which to sell mutual funds and services. Our 12-month target price of $63 is 13.7 times our 2007 EPS estimate, in line with the stock's historical average.

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From: Lynn11/5/2007 12:59:22 AM
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Citigroup CEO quits, bank may face $11 billion writeoff By Jonathan Stempel and Dan Wilchins
47 minutes ago

NEW YORK (Reuters) - Charles Prince resigned on Sunday as chairman and chief executive of Citigroup Inc, as the bank said it may write off $11 billion of subprime mortgage losses, on top of a $6.5 billion write-down last quarter.

Robert Rubin, the former U.S. Treasury Secretary who had chaired Citigroup's executive committee, was named chairman, while Sir Win Bischoff, who runs Citigroup's European operations, was named acting chief executive.

Citigroup said it expects to write down $5 billion to $7 billion after taxes -- roughly three or four months of profit -- for its $55 billion of exposure to U.S. subprime mortgages.

The write-down equals $8 billion to $11 billion before taxes, and may rise if markets worsen, the largest U.S. bank said. Citigroup's previous $6.5 billion write-down related to subprime mortgages, loan losses and other debt.

"I am responsible for the conduct of our businesses," Prince said in a memo to employees. "The size of these charges makes stepping down the only honorable course for me to take as chief executive officer. This is what I advised the board."

Citigroup, whose capital levels have been called into question, expects by June 2008 to return to normal capital levels, after previously expecting an early 2008 return. It has no plans to cut its 54 cents per share quarterly dividend.

"It's shocking," said Ralph Cole, a portfolio manager at Ferguson Wellman Capital Management in Portland, Oregon. "The size of the write-down is most surprising, and the quickness with which subprime is deteriorating. Who's to say it isn't the last write-off (in the financial industry). I wonder what it means for everyone else."

Prince's departure came after he told investors on October 15, four days after an investment banking management shake-up, that the board thought Citigroup had a "good, sustainable strategic plan," and that further management changes weren't needed.

His exit ends a tumultuous four-year tenure marked by heavy turnover among senior executives, questions over strategy, and the mounting loan and credit losses. Problems have also spurred calls for the bank, which has $2.35 trillion of assets, to be broken up because it is too unwieldy.

Prince stepped down five days after Merrill Lynch & Co ousted Chief Executive Stanley O'Neal following a $8.4 billion write-down that was more than 50 percent higher than the bank had forecast, in what was also a speedy exit.

Citigroup shares have fallen 32 percent this year, and 17 percent since Prince became chief executive in October 2003. The shares rose early Monday in their Tokyo market debut.


In a joint interview, Rubin and Bischoff expressed support for Prince's overall strategy.

"The board is extremely supportive of Chuck's strategy," Rubin said. "This is absolutely the right track."

Rubin, 69, joined Citigroup in 1999 after more than four years as Treasury secretary, and chaired the bank's executive committee. He has long been a close adviser to Prince, focused on strategy rather than day-to-day operations.

Before joining the Clinton administration, Rubin had spent 26 years at Goldman Sachs & Co, becoming co-chairman of the investment bank.

Bischoff, 66, assumed his present position in May 2000 after the acquisition of Schroders Plc's investment banking business by Citigroup unit Salomon Smith Barney. He had been chairman of Schroders since May 1995.

Prince has struggled to improve results at Citigroup, especially in U.S. consumer banking, its biggest business.

He had also been under enormous pressure to cut expenses, including from the New York-based bank's largest individual investor, Saudi Prince Alwaleed bin Talal.

While Citigroup's Prince appeared to have some success early this year, the write-downs have thwarted that goal.

Prince didn't help his cause in July when he said Citigroup was "still dancing" to a private equity buyout boom that was about to flame out, suggesting to investors that he didn't appreciate the risks in leveraged lending.

Citigroup has exposure to mortgages through tens of billions of dollars of off-balance-sheet structured investment vehicles, and is in talks with rivals to set up a conduit to buy assets from troubled SIVs.

The U.S. Securities and Exchange Commission is examining whether Citigroup accounted properly for its own SIVs, the Wall Street Journal said. Citigroup declined to confirm the existence of a probe.

"I'm not sure what the long-term solution is," Cole, the portfolio manager, said. "This has really deteriorated into quite a mess."

Jim Huguet, co-chief executive of Great Companies LLC in Tampa, Florida, said: "They need someone who is capable of really building the business."

It's not clear who might become permanent chief executive, or how long a search will take. A board committee consisting of Rubin, Alain Belda, Richard Parsons and Franklin Thomas will seek a replacement from internal and external candidates.

The bank lacks on obvious internal successor. Candidates might include Vikram Pandit, who oversees investment banking and alternative investments, and Chief Financial Officer Gary Crittenden, though analysts have said neither may be ready.

John Thain, who runs NYSE Euronext, might also be considered, analysts said.

Bear Stearns Cos and Swiss bank UBS AG also shook up top management in 2007 after credit losses.


Prince took the helm of Citigroup as the hand-picked successor of Sanford "Sandy" Weill, his mentor since joining a Baltimore firm called Commercial Credit Co in 1986.

The first half of Prince's tenure was marked by a cleanup of ethical and regulatory problems. Citigroup paid more than $5 billion to settle litigation, including over its work for Enron Corp and WorldCom Inc and the issuance of inflated stock research by analysts like the now-discredited Jack Grubman.

Prince bowed deeply at a October 2004 Tokyo news conference in apology for a scandal that caused the closure of Citigroup's private bank in Japan. The U.S. Federal Reserve barred the bank from acquisitions for a year while it cleaned up its house.

When Prince refocused on Citigroup's operations, he emphasized organic growth, especially outside the United States, saying Citigroup was too big to pursue the "transformational" acquisitions that marked Weill's tenure.

He sold asset management and insurance units, and added branches and lending offices for the stagnating U.S. consumer banking unit. Acquisitions, apart from a pending purchase of Japanese brokerage Nikko Cordial Corp, were small.

But revenue didn't grow fast enough, while expenses grew too much. Prince in April set 17,000 job cuts companywide.

Note: Click on the story URL to see a most unflattering picture of Charles Prince.

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To: st0ckg0d who wrote ()11/19/2007 1:07:48 PM
From: Cheeky Kid
   of 256
No free advertising here...Bu-Bye

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To: JakeStraw who wrote (213)12/13/2007 1:04:43 PM
From: Rob C.
   of 256
Anyone else looking at this as a buying opportunity?

It is finally time to buy C. All the small time investors are gone. Panic selling has gotten all of the weak shares.

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To: Rob C. who wrote (217)12/17/2007 10:57:48 AM
From: Rarebird
   of 256
<<Anyone else looking at this as a buying opportunity>>

Citigroup had to offer a market interest rate of eleven percent to Abu Dhabi to procure the minuscule sum of $US 7.5 Billion, enough to tide it over for the rest of this year. To pay that high an interest rate for that amount of money is a clear indication that the REAL state of Citigroup's balance sheet and its capital is MUCH worse than is presently being reported. The rate it is offering on this deal is DOUBLE what its present bondholders are getting. If Citigroup could have simply issued new debt to gain this "breathing space", it would have.

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