Citi, the third largest US bank by assets, announced a fall in second quarter profits and revenues, due to the sale of a stake in Turkey’s largest bank and other troubled assets it sold off after the 2007-08 crisis.
Citigroup, along with all large global banks, will find it difficult to maintain the pre-crisis profit levels. Leveraging a global strategy was a good way of increasing returns but the crisis and the mood of the markets, the regulators and the shareholders have narrowed the scope of banks' operations.
Pandit said: “We’ve seen the most dramatic shift in governance of the banking system since the Great Depression from a regulatory perspective and also board governance,” adding that the sector is close to ‘regulatory overload'. Specifically, he rejected the UK's proposals for separating retail from investment banking.