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    News

    Mike Corbat’s Got Two Choices For Citigroup Employees

    Choice number one: everyone starts earning more money for the bank, following an exhilarating pep rally run by Corbat in the cafeteria involving senior executives shooting Citi swag into the crowd out of tee-shirt guns, cheerleaders, and  a Spartacus Workout demo and before/after shots of MC, meant to inspire people and show them what they’re capable of if they really put their minds to something. Choice number two: Bank of America-style layoffs.

    Michael Corbat, new chief executive officer, says he wants to run a more efficient bank. That means rousing or cutting one of Wall Street’s least productive workforces. Citigroup generated about $206,000 of revenue for each employee through the first nine months of the year, down 7.5 percent from the same period in 2011, while rivals including Wells Fargo & Co. posted increases, according to data compiled by Bloomberg. Excluding a one-time writedown of $4.7 billion, Citigroup’s productivity rose less than 1 percent…“It’s likely they will have some sort of headcount- reduction program more in line with Bank of America, which is looking to get rid of about 10 percent of employees,” said Erik Oja, an equities analyst at Standard & Poor’s in New York. “Having the lowest revenue per employee is something they will have to address, and growing the revenues is pretty tough right now with net interest margins falling and loan growth so low.”

    Pandit probably was distracted from his cost-cutting goal as he grappled with public rebukes while trying to sell unwanted assets, said David Knutson, a credit analyst with Legal & General Investment Management America in Chicago, which owns Citigroup debt. Disposing of Citi Holdings assets remains “the elephant in the room,” he said. “He had a lot of plates in the air, and there were a couple of setbacks,” Knutson said. “Expense cuts are painful, and you’ve got to gore some sacred cows,” Knutson said. “You can’t do that if you don’t have an explicit mandate, if you don’t have focus and you’re hamstrung with legacy issues.”

    Citigroup Productivity Worst of Big Banks Shows Challenge [Bloomberg]
    Earlier: Mike Corbat Will Torch The Fat Off Citi Like He Torched The Fat Off His Abs

    / Oct 25, 2012 at 1:29 PM
  • News

    George Soros Is Not Here To Make You Feel Warm And Toasty Inside! George Soros Is Not Here To Tuck You In At Night!

    George Soros is here to tell you a bedtime story about what happens to little boys and girls who don’t listen to every damn word he has to say!

    / Jan 24, 2012 at 5:04 PM
  • News

    Layoffs Watch ’11: Morgan Stanley

    Apparently the House of Morgan is mulling over what the firm would look like with a few thousand less employees.

    / Jul 13, 2011 at 3:50 PM
  • News

    What’s Happening In This Bull/Bear Scene?

    Above is a desk statue being hocked to employees of various investment banks, along other crap like deal toys, frames for your certifications, bookends and so on and so forth. While the person who brought it to our attention was of the opinion it was “too dirty” for the office, I think he might be […]

    / Aug 13, 2010 at 3:15 PM
  • News

    Goldman Sachs Mulling Over How To Deal With Prop Trading Situation

    Nothing’s been decided yet but they’re thinking things over at 200 West, lots and lots a things. Maybe they’ll spin the unit into its own hedge fund. Maybe they’ll move the prop team into the basement and keep them locked in there, like the third Olsen sister no one knows about. Eventually people will forget, […]

    / Aug 4, 2010 at 12:55 PM

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