Literature review
In this part I will give a list of the experts point of view on 2008 financial crisis, and the reason of the survive of Citigroup and bankruptcy of Lehman Brothers. The history of these two companies. The suggestions and recommendation they had to the bank Industry.
1.Introduction
Citigroup ranks 4th on the list of largest banks in the United States by assets and is one of the Big Four banks in the United States, alongside JPMorgan Chase, Bank of America, and Wells Fargo (ONeil, Erin August 2, 2016). Citigroup has 219,000 employees, although it had 357,000 employees at its height, before the financial crisis of 2007-2008 (Jaikumar Vijayan, 2018). Citigroup suffered huge losses during the financial crisis of 2007-2008 and was rescued in November 2008 in a massive stimulus package by the U.S. government (Citigroup, Form 8-K, Current Report, 2008). On January 16, 2009,
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Citigroup was replaced by Travelers Co (Browning, E.S., 2009).In 2010, Citigroup achieved its first profitable year since 2007. It reported $10.6 billion in net profit, compared with a $1.6 billion loss in 2009 (Guererra, Francesco, 2011). Late in 2010, the government sold its remaining stock holding in the company, yielding an overall net profit to taxpayers of $12 billion. A special IRS tax exception given to Citi allowed the US Treasury to sell its shares at a profit, while it still owned Citigroup shares, which eventually netted $12 billion (Dennis, Brady, 2010). According to Treasury spokeswoman Nayyera Haq, "This (IRS tax) rule was designed to stop corporate raiders from using loss corporations to evade taxes, and was never intended to address the unprecedented situation where the government owned shares in banks. And it was certainly not written to prevent the government from selling its shares for a