How Citigroup and Nomura are coping after the banking boom: Global banks – restructuring in the face of economic adversity

Times are tough at present for Citigroup, the world’s largest bank. As if low market prices, eroded investor confidence and outstanding loans worth billions to the financially crippled Argentina are not enough, the shadow of federal and industry investigation hangs over this financial giant. Under suspicion is one Jack Grubman, an analyst with Saloman Smith Barney (SSB – a subsidiary of Citigroup), who is alleged to have knowingly given false recommendations to investors during the boom of the nineties. Grubman was one of the few analysts still recommending investors to buy Worldcom Inc. and Global Crossing right up to the bitter end.