Worst May Be Yet to Come for Citigroup

Citigroup faces more hardship and financial difficulties despite the $25 billion government rescue. With over a year of operation losses and the month long plunge of its share prices in October, Citigroup is still facing further hardships and under heavy pressure to cut cost. Citigroup is seeing their loans made during better times in the economy going sour in this time of crisis, and internal struggle of office politics has made this once financial giant's future look gloomy. The first year CEO Vikram S. Pandit's attempt to purchase Wachovia, was upended by their rival Wells Fargo, and left Citigroup in need of a new strategy to gain deposits.
Christopher Whalen a managing partner at Institutional Risk Analytics said;
"Citi doesn't have a credible management team, they don't have a creditable board... If you look at their loss rate, it is almost inevitable that Citi is going to be asking the government for more money next year."
The bank has announce to cut 40,100 jobs, include cuts in its global assets. But expert say that 9,100 more workers needs to be cut to meet Citigroups goals.