Citigroup Europe CEO Sees U.S. Universal Banks Gaining Share
Many investment banks are still recovering from the financial crisis several years ago. Efforts to improve Citigroup’s system were established when representatives stated that they will be hiring investment bankers to enforce the bank’s new regulations. The demand for intellectuals is necessary in the industry. For example, Citigroup hired Luigi de Vecchi, who used to work for Credit Suisse Group, to serve as their chairman of continental Europe for corporate and investment banking. Citigroup’s European chief, Jim Cowles claims that the bank still has to cut costs and re-determine the focus of the bank. However, they are gaining more market share than European banks because of their ability to “absorb the rising cost of regulation.” Cowles argues that Citigroup, a bank that combines investment, commercial and consumer banking, can deal with these costs better than other banks; this is based on their ability to retreat to another market if one fails.
European investment banks have been improving at a pace that is noticeably slower than U.S. banks’. They are also more hesitant when making decisions because of the insecurities and risks that the bank may come across if the plan fails. Banks like Citigroup, which is one of many U.S. universal banks, is confident that a more senior management team would assist the bank’s recovery from the financial crisis.
Written By: Melody Mark
Choudhury, Ambereen, and Elisa Martinuzzi. “Citigroup Europe CEO Sees U.S. Universal Banks Gaining Share.” Bloomberg. Bloomberg L.P., 14 Apr. 2013. Web. 14 Apr. 2013.