Citigroup is still reeling from the subprime mortgage crisis and the credit crunch. Although newly minted chief executive Vikram Pandit has so far resisted calls to break up the financial behemoth, the bank is breaking-up anyway. It's just doing it in bits and pieces.
Today Citigroup announced it is shuttering 32 branches of its Japanese lending unit, CFJ KK. It is also shutting down 540 unmanned automatic loan machines over the next 12 months. We have no idea what an "unmanned automatic loan machine" might be but it sounds like a very bad idea. And, on the other side of the original Axis of evil, Citigroup is reportedly hoping to quickly sellits German consumer-banking unit Citibank Privatkunden AG.
Oh, and they're also pulling out of the UK mortgage market. Today Egg, an internet-only bank owned by Citigroup, said it is pulling out of the UK mortgage market from today. And, most recently, Reuters is reporting that Citi received the first round of bids for its $7 billion Primerica Financial Services, the group that handles insurance and mutual fund sales.
Posted by guest , Jun 06, 2008 1:19PM
Unmanned loan machines are popular in Japan, where going to a bank for a loan is sometimes considered culturally unacceptable. No collateral or wait period is typically required, but collection is more strict ("agents" break your legs).
see article:
http://www.iht.com/articles/2007/01/24/bloomberg/bxdebt.php
Posted by guest , Jun 06, 2008 1:31PM
I doubt this has much to do with Citi's subprime problems or operational incompetence. Japan tighted consumer finance regulations a couple years ago and the industry has been slowly falling apart ever since. The decision was probably entirely based on the economics of the business. Even if it weren't, why the fuck would you call closing 34 branches the breaking up Citi, no matter how you qualify it.
Posted by guest , Jun 06, 2008 1:34PM
1:31 try the decaf dude- I hear it's fantastic!
Posted by StMarc , Jun 06, 2008 1:34PM
See? See? This is the kind of thing that will happen if Wal-Mart goes into the financial markets! You'll be able to buy knockoff soda, earthworms, and GM commercial paper out of a vendomatic EVEN AFTER THE STORE IS CLOSED.
And there is no, I repeat no, scenario in which the ability to buy ANY of those things late at night after hittin' the bars is going to produce positive results.
M
Posted by Anal_yst , Jun 06, 2008 1:38PM
so, StMarc, you're saying it wouldn't be good to get shartfaced and go f&ck with the automated invest-o-matic 2000?
1. Insert credit card
2. Select risk tolerance/investment objectives.
3. Go wild!
Posted by guest , Jun 06, 2008 1:54PM
Oh, and you can also drive a car off the cliff late in the night after hittin' the bars.
So how do we prevent the above? Ban car sales?
Posted by MGR , Jun 06, 2008 2:05PM
@Anal_yst - Some people might generate better alpha that way. There's at least 2 or 3 I work with who function 10x better when intoxicated/severly hungover.
Posted by guest , Jun 06, 2008 2:13PM
sounds like detritis anyway.
Posted by StMarc , Jun 06, 2008 2:38PM
Anal_yst: At least with a slot machine, you can get the drinks part for free and there are cute girls to bring 'em to you. :)
Posted by StMarc , Jun 06, 2008 2:43PM
1:54: I'm actually more of a small-l libertarian most of the time. The fact that many people are too stupid for me to be comfortable with their operating a 3000# machine carrying several gallons of high explosive shouldn't stop them having cars, and if Wal-Mart wants to get into the financial sector, I wouldn't try to stop them. I'm just asking everybody to think about consequences, that's all. Just because you *can* doesn't mean you *should.*
Posted by Anal_yst , Jun 06, 2008 2:52PM
Well put StMarc.
And MGR - do any of those guys have any tips right now, ughhhhh
Posted by guest , Jun 06, 2008 4:20PM
Dude @ 2:43,
You spent the morning justifying why Walmart should be stopped from getting a license for a bank (hence your assertion that you 'wudn't try to stop them' leaves me scratching my head - why then would you offer up justifications for the same??)
Of course you want to 'stop them.' More precisely you hate yourself (or your proffession or whatever) being regulated, so you want some other people regulated out so that you dont end up being regulated because of them.
Not only is that super hypocritical, that is also elitist and unjustifiable on multiple levels! You are worse than the true blue socialists who are at least honest about regulation - they want everyone regulated. You cynically want to use regulation to your benefit and to the detriment of the 'proles.' That is worse.
And for the love of God (or greater human good, whatever rocks your boat) stop claiming to be a libertarian. There are boatloads of you floating around who wouldn't know if libertarianism hit them on their face, are mainstream left-liberals and are totally down with avowed socialist Obama these days and somehow think claiming to be libertarian is 'cool.' Just honestly fess up the the fact that you are a neo-liberal, as opposed to a classical liberal or a libertarian. And read up some before you start claiming stuff about political ideologies.
Posted by StMarc , Jun 06, 2008 4:24PM
4:20: You're funny.
M
Posted by guest , Jun 06, 2008 5:31PM
The real question is what kind of rates was Today Egg offering?
Posted by guest , Jun 09, 2008 5:36PM
We already have unmanned, automated loan machines right here in the U.S.
They are called slot machines, and you can find one in Vegas, Atlantic City, most any res, and even on the internet.
1. Enter coins/bills
2. Pull handle
3. Win some money
4. Blow it immediately
God Bless America!