Citigroup a flop, John Reed says
A chief architect of the merger of Citicorp and Travelers Group says that the decision hasn’t benefited shareholders.
As the 10th anniversary of the formation of New York-based Citigroup Inc. approaches, a chief architect of the merger of Citicorp and Travelers Group of New York, is saying that the decision hasn’t benefited shareholders, the Financial Times reported.
John Reed, who was co-chairman and chief executive of Citicorp and Citigroup until 2000, argued that the consumer business which resulted from the Oct. 8, 1998, merger was too product-driven and didn’t focus enough on clients.
Sanford I. Weill, the former co-chairman and chief executive with Mr. Reed, defended Citigroup, saying that the New York-based company’s struggles of late are due to poor management decisions.
Citigroup has faced severe financial problems, with $9 billion in write-downs expected for the first quarter and 30,000 job cuts being considered over the next two years (InvestmentNews March 10).
Learn more about reprints and licensing for this article.
