CHARLOTTE, N.C. — Citigroup Inc. reports results for its third quarter on Thursday. The following is a summary of key developments and analyst opinion related to the period.
OVERVIEW: Citigroup has been among the banks hardest hit by the credit crisis and recession. It has received $45 billion in loans from the U.S. government – a portion of which was converted to a 34 percent ownership stake – and guarantees to protect against losses on more than $300 billion in risky assets.
The New York-based bank is also reportedly in talks with the U.S. government to reduce its stake in the bank.
Citigroup, like other national banks, has seen more customers stop making their monthly payments as the economy falters and unemployment rises. It's a given Citigroup will see more debtors fail to make payments. The question is whether the rise in defaulting loans is starting to moderate, especially among credit cards and mortgages.
The bank has also been undergoing major management changes in recent months, adding new directors and replacing key executives. Former CFO Gary Crittenden left the bank in July, while the head of its Asia Pacific division, Ajay Banga, left in June.
AP | Posted 11.21.2009 | Home