'There's no reason to mince words: It's do-or-die time'.
This a make-or-break year for Citigroup—and everything hinges on the bank's passing one single test.
'There's no reason to mince words: It's do-or-die time for Citi', said Mike Mayo, a banking-industry analyst at brokerage firm CLSA. 'No more excuses, no more apologies. Either Citi gets it done or it's time to more aggressively break up the company'.
Crain's reports that the 'it' that Citi needs to get done is passing the so-called stress test administered by the Federal Reserve. Citi has flunked the test twice in the past three years, and Chief Executive Michael Corbat probably can't survive another failure. The bank submitted its paperwork earlier this month and should get results near the Ides of March.
The stakes couldn't be higher because investor patience with Citi is just about gone. The bank's stock has fallen by 75% over the past decade, nearly double the decline of the next-worst performer, Bank of America.
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