Citigroup CEO: Accept new world of tighter credit

Yahoo ^ | 6/16/09

[FromLori]

Borrowers should accept a new world of tighter, more expensive credit as financial institutions recover from months of bad loans, failed banks and foreclosed homes, Citigroup Inc.'s chief executive said Monday. During the past few years, "U.S. consumption and credit creation were the two main drivers of growth," Vikram Pandit told a conference of business, economic and government leaders in downtown Detroit. "The world needs new drivers of growth — and a new business model." Pandit's speech closed the first day of the three-day National Summit, which is expected to draw about 3,000 attendees to Detroit over three days. The goal of the summit is to craft a plan to keep the U.S. competitive in manufacturing, energy, technology and the environment. He anticipates less credit that is more costly even as financial markets show signs of recovery. He also expects more corporate restructurings across different industries. Citigroup has been among the most troubled banks throughout the crisis, receiving $45 billion in federal funds. Last month, the government determined that it would need to raise an additional $5.5 billion as a buffer against future losses. Investors have criticized its board and management for allowing the bank to make big investments in the risky housing market — actions that led to Citigroup reporting billions in losses. Pandit acknowledged Citigroup has "received much help along the way" and praised "strong government action" for starting to turn things around in the sector. But he said the company has taken many steps to restructure its business, including cutting its expenses by 25 percent and work force by about 20 percent, and lessening its dependence on credit and consumption.

[FromLori]

that guy is such a FRAUD citi fraud was the largest donor to the obominations inaugeration!!!!

[grey_whiskers]

This is all part of the plan to shift wealth from the US and Europe to the Third World (with its large young population) so that companies can make money selling to them, instead of the West, which is getting older, and whose consumers' pockets have been emptied of everything but lint.

Hint: Wealth != Earnings.

Cheers!

[Proud_USA_Republican]

This is like a crack dealer complaining that too many people are doing crack.

[SECURE AMERICA]

Borrowers should accept a new world of tighter, more expensive credit as financial institutions recover from months of bad loans, failed banks and foreclosed homes, Citigroup Inc.’s chief executive said Monday.

How about this instead. You crooks accept a new world of extremely lower bonuses for failing to do your job. Down size. 2 BMW’s instead of 3.Only one summer home instead of a summer home and a European home.
Yes sacrifices need to be made and it is time that YOU are the ones sacrificing.....

[PeterPrinciple]

How about this instead. You crooks accept a new world of extremely lower bonuses for failing to do your job. Down size. 2 BMW’s instead of 3.Only one summer home instead of a summer home and a European home.
Yes sacrifices need to be made and it is time that YOU are the ones sacrificing.....

---

Sounds like you support zeros appointemnt of czar of executive compensation.

[Vendome]

Almost makes you want to agree to government oversight of executive wages.

[E. Pluribus Unum]

We made our last house payment on Monday.

WE'RE DEBT FREE!

And staying that way.

I have no sympathy for people who live beyond their means.

[Eyes Unclouded]

They don’t want your sympathy. Your money will do just fine.

[FromLori]

WOO HOO Congrats! We are as well it was my lifelong dream so I was sooo happy.

You know I remember years ago people used to have parties when they paid off their mortgage it was a sense of pride and I even recall people burning the loan documents lol.