[mekrob]

CitiGroup cuts 17,000 jobs
CNN
$this->bbcode_second_pass_quote('', 'N')EW YORK (CNNMoney.com) -- Citigroup said Wednesday it is cutting 17,000 jobs in its first major overhaul in 10 years but some industry analysts said the cuts could be the exact opposite of what the nation's biggest bank needs.

In addition to the cuts, the New York-based bank said it will move 9,500 jobs to "lower-cost locations" - with about two-thirds of those jobs being moved as the positions become vacant.
charles_prince_citigroup.03.jpg
Citigroup CEO Charles Prince is under pressure from shareholders to restructure.
Citigroup announced it is eliminating about 5.2 percent of its workforce. CNN's Ali Velshi reports (April 11)
More in banking: Hidden deals colleges are cutting with banks to market credit cards to their students. (April 9)
The restructuring affects 8 percent of Citi's current work force of 327,000 full-time employees.

[Eli]

This is just another in along line of banks that are moving their operations to China and India.

This is definitely a bad sign for the US in particular. The big banks are done with the US and they see the writing on the wall. Right now they are doing all they can to get into the Chinese financial services market.

The money makers look at the US and they do not see a lot of opportunity for growth, they have done all they can. The housing rise scam being one of their best ponzi schemes ever.

This is a growing trend we are seeing you have to look closely but the bankers are taking actions that prove they are becoming disillusioned with the US.

[PrairieMule]

The Giant mortgage company I work for began outsourcing to India for document archiving and IT support. It's the beginning of a long trend.

[TommyJefferson]

I didn't see in the article if the new, lower-cost location is someplace like St. Louis, or someplace like Bhopal.

[mmasters]

They're just preparing for the new world banking system.

They paint it as a bad thing downsizing their US presence (while on the other hand increasing their global presence). A power play in disguise.

Expect Morgan-Chase, Bank of America and others to follow similarly.

The US is a bloated elephant at this point.

[Eli]

Bank of America deal with China

$this->bbcode_second_pass_quote('', 'M')organ Stanley: buying into China
3rd October 2006
By Ingo Nachbaur
Morgan Stanley has secured a Chinese banking license by acquiring Zhuhai-based Nan Tung Bank.
Morgan Stanley has acquired Nan Tung Bank, a small bank based in China's Guangdong Province. Although the Chinese bank has only one branch and less than 40 employees, the deal provides Morgan Stanley with a much sought-after banking license for the Chinese market, and thus could well prove a shrewd investment.
'Content Nan Tung Bank was formerly part of a Macau-based unit of Bank of China, offering a comprehensive set of commercial banking products and services, including deposits, home mortgage loans, corporate loans, foreign currency exchange and remittances, trade and credit facilities to both individuals and corporate customers.

[threadbear]

$this->bbcode_second_pass_quote('Eli', 'T')his is just another in along line of banks that are moving their operations to China and India.

This is definitely a bad sign for the US in particular. The big banks are done with the US and they see the writing on the wall. Right now they are doing all they can to get into the Chinese financial services market.

The money makers look at the US and they do not see a lot of opportunity for growth, they have done all they can. The housing rise scam being one of their best ponzi schemes ever.

This is a growing trend we are seeing you have to look closely but the bankers are taking actions that prove they are becoming disillusioned with the US.

[Tyler_JC]

"Operating expenses soared 15 per cent last year to $52 billion, while revenue rose 7 per cent. Last summer, Saudi Prince Alwaleed bin Talal, Citigroup's largest individual shareholder, called on the bank to make "draconian" cuts."

Did you miss that line?

Expenses are rising twice as fast as revenue!

The largest shareholder is angry and wants Citigroup to cut costs.

Citigroup had a bloated system with too many chiefs and not enough indians.

If this trend continues, then we might be on to something. But for now, this is an isolated example of one company trying to cut costs in order to remain competitive with its peers.

This is not an industry in decline, at least it does not appear to be at the moment.

[mmasters]

Few years old but should give you some idea of this guy:

$this->bbcode_second_pass_quote('', 'S')ome of Alwaleed's holdings and recent acquisitions include:

- The single largest shareholder in Citigroup, the teetering U.S. financial giant, which is reported to have a derivatives bubble of more than $12 trillion and has reportedly sought recent emergency assistance from the Federal Reserve. On July 18 Alwaleed made an additional $500 million purchase of Citigroup stock, raising his estimated shareholding to $10 billion.

- Alwaleed also owns, according to an August 9 story in The Guardian, three percent of the total shares of Newscorp (Fox), making him the second-largest shareholder behind Rupert Murdoch.

- Alwaleed's other significant holdings include Apple Computer, Priceline, The Four Seasons Hotels, Planet Hollywood, Saks and Euro Disney.

- Alwaleed also sits on the board of directors of the infamous Carlyle Group.

http://www.fromthewilderness.com/free/w ... bia_1.html

[Eli]

I hear ya Tyler

No one has said they are going tits up

Au contraire mon frier

They are just making a wise business decision.

$this->bbcode_second_pass_quote('', 'B')ut the results of Citigroup's international expansion will ultimately determine Prince's success. Citigroup is far ahead of its U.S. banking rivals in developing business opportunities in international markets, which promise much higher growth rates for financial-services companies than the relatively mature U.S. markets can offer, even though large foreign investments (such as Citigroup's stake in China's Guangdong bank or Turkey's Akbank) do take time to pay off.[url]=http://www.fool.com/inlvesting/dividends-income/2007/01/23/citigroup-faces-its-critics.aspx]link[/ur]

[Baldwin]

Besides banks sinking the yuan and dollar, something else needs to be considered.

Where are young people going to find jobs anymore? The entry-level positions that a fresh college graduate would take are being outsourced.

[Kingcoal]

I've been waiting twenty years now for the microscope of downsizing/rightsizing to focus on the financial industry. To my eye, it's fantastically inefficient and bloated. There is level after level of personnel which can be eliminated.

[Armageddon]

Just the beginning

[mmasters]

Yup, and Oct 19th is the 20 year anniversary of the 1987 crash as well as the next business day, Oct 22nd, is the 100 anniversary of the Panic of 1907 which created the federal reserve.

[strider3700]

Well the 1907 panic was created by the people pushing for the creation of the federal reserve. How did they gain from the 87 crash?

[mmasters]

Took out Drexel and the private financing boom that was interfering with the banking business.

[strider3700]

$this->bbcode_second_pass_quote('mmasters', 'T')ook out Drexel and the private financing boom that was interfering with the banking business.

[Ferretlover]

Is the Mr. ____ Prince of Citibank any relation to Erik Prince who owns the Blackwater mercenarys?

[truecougarblue]

What I find funny in this is how this news is used to "call a bottom". These jamolks will be calling bottom every quarter for the next decade.

[gampy]

I dunno, I am no economist, but even 40% of their projected net profits is nothing I would sniff at. So they only made 400 million dollars as opposed to a billion. Oh well...there goes the chairman's christmas bonus. Boo hoo.

That kind of money is still a lot of fucking money.

Doesn't seem newsworthy to me, but I am not a banker, or invested in that bank's stock, so...what do I know.