California, The House, CEO discussed on Bloomberg Surveillance


To the california a group of people mike mayo your fiery ian impassioned in let's get right to the house of mr hor back people have been waiting and waiting why now and citibank so we expect citi group stock to double the next four to five years that's partly because of what michael corvette ceo and citi group has done and it's partly because of what we think they should do what citi group is done is they've reduction reduced structural risk permanent riskreduction it citi group to probably the lowest level that i've seen since the merger with travel this and that through the stock beta you're going to see the biggest reduction the stock beta the biggest reduction in the costs of capital and the biggest reduction in risk premium for any bank stock iran how much is citi group like cindy wiles citi group is a completely moved on from the wild years it so much moved joint both number one group can concentrate on being a large bank and optimizing what they have no more big bank mergers and night ernest if you never say never with mergers but the big mergers the merger after merger it took sake group you know like a decade and a half to integrate these acquisition taxi citi group had something called project rainbow which is creating wind global consumer platform they finally finished that last year and that's didn't back from the early part of last decade was sandy wiles acquisitions that's one number two would be the credit risk citi group has a lot more prime lending and super prime lending a whole lot less subprime lending us some of that was put in the books after sandy weill left for sure but i'd say in terms of the credit risk the overall risk profile of the firm acquisitions risk is a lot less at citigroup and over the next five years we expect citi group to buy back one third of its shares and the only thing that prevents them from doing that is messing up says long as they don't blow a big hole in your balance sheets long as they don't now trip on the way to.

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