Citigroup Case



Citigroup Case

Introduction

The downfall in the performance of Citigroup began in 2007 which was caused by a drop in the value of bonds that were backed by loans. The stock price of Citigroup also suffered huge losses in recent months leaving the market capitalization of the company into abrupt decline.

Answer # 1

Primary Factors that lead to the downturn in the performance at Citigroup.

Citigroup was held responsible of putting off the European Bond market by selling bonds worth of €11 billion on August 2, 2004 on the MTS group trading platform. This caused a fall in the price of bonds and ...