business101 - article sum 1

business101 - article sum 1 - Many scandals have occurred...

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January 12, 2009 Business 101 Business Article Summary Citigroup lost $20 billion in 2008 and may lose in addition a minimum of $4 billion this month once the company reports its results. Because of the current state the company is in, they are considering selling divisions in order to cut costs and make up for some of their losses. Morgan Stanley is a possible partner for Citigroup to merge with, which as a result would create a brokerage of 19,000 brokers. This merger would be larger than the merger of Merrill Lynch with Bank of America that created 16,000 brokers.
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Unformatted text preview: Many scandals have occurred within the past ten years when mergers occurred, such as the merger of Travelers Group and Citicorp in 1998, which ended in an illegal deal. In 2003, Citi and 11 other Wall Street firms collectively had to pay $1.4 billion to New York State and the Securities and Exchange Commission to settle charges. Other scandals occurred, but the biggest was when Citi lost $20 billion. As a result, Citi must overcome the obstacles ahead to still remain a dominant company in the economy, both nationally and globally....
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