Touching memo,but syrupy corporate mumbojumbo.Serving customers for their needs sound altruistic.But do they really do it, with hidden financial charges and heavy penal interests for delayed payment?.Nor does the memo say any where that the Bank shall follow sound financial practice of lending to those who are in need and also who are capable of repaying.Emphasis seems to be more on catching with competitors than with sound financial management..What about the perks of their executives?Are they going to follow Goldman Sachs with bonuses?
They should be penalized for having mismanaged to the extent of making the Federal govt. loan Citi to tide over their incompetency, though they have made arrangements to repay..
Time that these corporates are made accountable.Mere expression of gratitude will not suffice.
Citigroup announced Monday that it has struck a deal to repay $20 billion in federal bailout funds, capping a frenzied effort to free itself from government control and catch up to its healthier rivals.
In an internal memorandum obtained by DealBook, Citi’s chief executive, Vikram S. Pandit, told employees that the firm still faces challenges as it seeks to recuperate from last fall’s financial crisis. He also said that Citi owes taxpayers and the government “a debt of gratitude for their extraordinary assistance.”
Read the full memo after the jump.
Today, we announced a series of transactions to repay the $20 billion of TARP outstanding and terminate the asset guarantee we received from the U.S. government. The Treasury also announced its intention to sell its ownership in Citi stock in the coming months. These actions bring us closer to ending a very difficult period for our company, and we owe the U.S. taxpayers and the government a debt of gratitude for their extraordinary assistance.
That we are here is a testament to your hard work and accomplishments in getting our house in order. Today we are strongly capitalized, efficient, focused on our clients with a clear strategy for the future. With your commitment and dedication, we have created a strong foundation for the future.
Our goals near-term are clear: to achieve sustained profitability and to promote economic recovery by lending, keeping people in their homes, and helping clients with their needs. There are still economic challenges ahead that require your continued focus on clients and disciplined execution.
Over the past few months, I have visited many of you in the U.S. and around the world. I am continually impressed by the depth and breadth of talent we have at Citi. I am also very touched by your efforts to help customers and families in need and the communities of which we are a part. Thank you for all you do every day for our clients, customers, communities and Citi. I am very proud of your accomplishments.