zalo

The End of Citigroup

I think that saying that the business model is causing citi to implode is incorrect. Why? Because banks (Countrywide, Wahington Mutual), brokers (Bear Stearns, Lehman), wealth managers (UBS, etc) have very different approachs, technologies, philosophies and leaderships and they are also under. So, Citi is not suffering because of its business model, its suffering due to the financial crisis. Some weeks ago, when Morgan Stanley was in the edge, some were speaking that actually the supermarket approach provided stability to banks and that is why MS and Goldman turned to bank holding companies.
One thing is to have a business model that can keep the stock from outperforming and another is saying that it is the cause of an implotion. There is a huge difference in both analysis.