Citigroup: Restoring Ethics and Imagen Before Growth.
April 11, 2012
Significant regulatory scrutiny that has been linked to the biggest scandals in the corporate history .Due some irregular activities under the red umbrella that cover the companies belonging to Citigroup, paying out massive legal settlements and a Federal Reserve announcement requiring the company to refrain from mergers and acquisitions until it has cleaned up internal controls.
Summary of Recommendation:
The Citigroup difficulties are the result of the five problems that will be identified in the next section. These problems can be remedied with three recommendations. First, Citigroup must reconsider its strategic choices and critical tasks in light of its new strategic context. Second Citigroup must align its structure and culture with its redefined critical tasks using at the keys to successful change. Third, Prince must reinforce the structural and cultural changes with his behavior as leader of the company
Case 1: Enron Corp.'s On July 2003 The Securities and Exchange Commission instituted and settled enforcement proceedings against two major financial institutions, J.P. Morgan Chase & Co. and Citigroup, Inc., for their roles in Enron Corp.'s manipulation of its financial statements. Each institution helped Enron mislead its investors by characterizing what were essentially loan proceeds as cash from operating activities. The proceeding against Citigroup also resolves the Commission's charges stemming from the assistance Citigroup provided Dynegy Inc. in manipulating that company's financial statements through similar conduct. J.P. Morgan Chase and Citigroup engaged in, and indeed helped their clients design, complex structured finance transactions. The structural complexity