Sample Thesis Paper

However, due to the nature of business lines and global economic challenges (Barry and Joel, 2003), Citi had exposure to the subprime mortgage industry and its crisis did not leave Citigroup financially comfortable. But instead the mortgage crisis made Citigroup to lose money suffering considerable losses in 2007.Sadly, after Citigroup various transactions involving write-offs and write-downs  on many of its collateralized debt obligations and mortgage-backed securities, the net income yielded was $3.6 billion a decline from $21.5 billion representing 83 percent fall compared to previous financial year 2006 (refer to table 1).

Table1. Citigroup Income Data

Annual income data (in millions)	2003	2004	2005	2006	2007	September 2008
Net Interest Income	$37,330	$41,617	$39,240	$39,488	$46,936	$40,439
Loan Loss Provision	$8,046	$6,233	$7,929	$6,738	$17,424	$22,019
Non-interest Income	$34,264	$38,018	$44,402	$50,127	$34,762	$6,759
Net Income	$17,058	$16,054	$19,806	$21,249	$3,617	($10,421)

Source: Citigroup Financial report, (2008), available at www.citigroup.com; retrieved on 21st January, 2009

Furthermore, the year 2008 was not financially smiling with Citigroup, since the group posted a net loss of $10.4 billion during the first nine months. To further shade light on the indicators of the problems facing Citigroup retail banking, the selling of group’s stakes to other outside investors in order to shore up the capital necessary to ride out the credit crunch say it all. For instance, in the month of July 2008 Citi sold non-core parts of its business in German retail banking corporations to French firm Credit Mutuel. These are some of the key issues that ought to be tackled in relation to Citi strategies in managing its business operation.  Therefore, in order to shade light on the core issues, the discussion shall look at key business lines of the Citigroup.

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