Citi slumps in New York, hits new low

16 July 2008

Shares in Citigroup dropped to their lowest level since the US bank was created by former chief executive Sandy Weill in 1998.

In New York, the bank's stock fell a further 43 cents to $14.79 yesterday - leading one analyst to speculate that the bank had grown "too big".

Citi has been one of the firms worst-hit by the ongoing credit crunch, and has written off around $40 billion of underperforming assets.

New chief executive Vikram Pandit indicated earlier this year that the bank will look to sell on a further $300 billion of assets in a bid to "get fit".

Talking to Bloomberg, William Fitzpatrick at Optique Capital Management commented: "The company has destroyed a lot of wealth, but Sandy Weill had a lot to do with that.

"He's the one who built this big monster. Clearly the company was too big."

Citigroup began trading a decade ago, following a $36 billion merger between Travelers Group and Citicorp.

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development