'They are moving their chips from global consumer to capital markets'.
Michael Corbat settled into an armchair at Citigroup’s Park Avenue headquarters in January and shared his strategy to make the bank boring. The past 11 months have seen him expand in businesses that are far from it.
Bloomberg News reports that Corbat, chief executive officer of the bank, extended his reach into commodities trading as other firms retrenched, kept a proprietary trading desk that takes a looser approach to new rules than some competitors and expanded the company’s derivatives business to make it the nation’s second-largest.
At the same time, he has sold or plans to sell consumer units in 19 countries from Japan to Peru.
'They are moving their chips from global consumer to capital markets', said Art Wilmarth, a law professor at George Washington University who wrote a 2013 paper about Citigroup and the $500bn in funds and guarantees the bank got from the government during the financial crisis. 'That’s troubling because they’ve repeatedly gotten into enormous difficulties with these kinds of speculative trading operations'.
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