Citigroup Back To Basics

Citigroup CEO Vikram Pandit says they are back doing what they should be doing.The economic imbalances are still there.Until the market sees credible plans for dealing with all these things,you're gonna have volatility.He believes you're gonna get real financial reform,and that's good.We've got to take a long term perspective on derivatives reform.Longer term,a safer system will benefit all of us.
Corporations need loans.The question is,how do you fund them?You've got to have a deposit base to fund them.That's the main business of a bank.Frankly,proprietary trading isn't core to Citi's business.They'll still be able to commit capital to work for their clients' behalf under the proposed Volcker Rule,although not for Citi's own behalf.
The volume of work is lower today,but Citi is doing the same work they've always done.As for the European debt crisis,the Euro's here to stay.The European Central Bank and others are making an appropriate response to the crisis.On stress tests of European banks,Mr.Pandit thinks anything you can do to put some of the questions and the issues behind us is good.The stress tests of U.S. banks restored confidence,Vikram Pandit observed.
Citigroup does business in more than 100 countries.Almost 50% of its business is non-U.S.,with nearly 35% of it in the emerging markets.