Citigroup Inc (C) Has a Lot of Issues to Handle: Jim Sinegal

Citigroup Inc (NYSE:C) has got into too many problems recently including the mortgage issue. However its Q2 earnings might have saved the stock and it’s on an upside today.

Citigroup Inc (C) Has a Lot of Issues to Handle: Jim Sinegal

Jim Sinegal, associate director of equity analysis at Morningstar, was on CNBC earlier and he discussed the problems that Citigroup Inc (NYSE:C) might have to tackle in the near future. He said that the settlement amount of $7 billion was expected by the investors and it can’t impact the stock by much. He thinks that the settlement is higher than the expectations of investors and that the department of justice is getting tougher as the settlement is moving up. The investors might be looking for the reasons on why the Department of Justice became tougher on the settlement. “We don’t actually do quarterly forecast at mornings,” Sinegal stated emphasizing that they focus on long term rather than short term.

He said that the expense side of the story would also catch the eyes of investors especially when the rates are down and the trading activity is not very good. The markets have not been that volatile either and Citigroup Inc (NYSE:C) had issues with compliance for a long time now. He also mentioned about the Mexico fraud while discussing about the issues and he feels that it would be interesting to see how the company can keep the expenses under control in between all of this.

There is also an investigation going on in the Foreign Exchange division of Citigroup Inc (NYSE:C) and there might be exits from some of the top executives in few of the divisions. Sinegal feels that the only way to cut the expenses for the company is from the bottom most segments of the employees. He also said that the management turnover has become a serious issue over the past couple of years and cited the examples of CEO change in Citigroup Inc (NYSE:C) itself along with few other key position changes in other companies.

“I think more so than the Forex, it’s this issue of management turnover,” he stated.

He also said that the decline in the trading revenue can be more than what people expect. So Citigroup Inc (NYSE:C) has a lot of issues to deal with and has to act faster.

Disclosure: None

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

Top 6 Cities For The Ultra Rich to Live in Comfort

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!