Citigroup Inc. (C): One More Reason to Buy

Citigroup Inc (NYSE:C)I’ve written before about Citigroup Inc. (NYSE:C)‘s Michael Corbat and the way he continues to impress me since he took the reins as CEO last October, after Vikram Pandit was unceremoniously ejected from the position.

Yesterday, at the bank’s annual shareholder meeting in New York City, Corbat made a statement that demonstrated to me yet again why he’s the man to take Citigroup Inc. (NYSE:C) to the next level and why investors should get on this train before it gets too far out of the station.

Bad bank
Citi Holdings is Citigroup Inc. (NYSE:C)’s “bad bank.” It was created in the wake of the financial crisis to hold the superbank’s toxic assets, along with the faltering and non-core lines of business Citigroup Inc. (NYSE:C) eventually wanted to be rid of.

But although Citi Holdings is off in a corner, trying to go unnoticed, it’s not off balance sheet. As such, investors have long complained that it’s not being wound down quickly enough and is a drag on Citigroup Inc. (NYSE:C)’s overall performance.

Good solution
So at yesterday’s shareholder meeting, his first since becoming CEO, Corbat had this to say regarding investor hopes for a quick wind-down of Citi Holdings: “It makes no sense… to destroy our capital simply for the sake of speed.”

Just last week I wrote an article in praise of Citigroup Inc. (NYSE:C)’s slow winding down of Citi Holdings, and compared it to JPMorgan Chase & Co. (NYSE:JPM)‘s London Whale situation. CEO Jamie Dimon could probably have wound down the London Whale’s outrageously large derivatives position sooner than he did, but rushing the job might have ended up costing the bank more than the $6 billion it already has.

Corbat’s commitment to wind Citi Holdings down at a pace consistent with minimizing loss, even in the face of investor pressure, is impressive and tells me he has the best interests of the business at heart. Well done, Mr. Corbat. Keep building a good bank, and the investor dollars will follow.

The article 1 More Reason to Buy Stock in Citigroup originally appeared on Fool.com and is written by John Grgurich.

Fool contributor John Grgurich owns shares of Citigroup and JPMorgan Chase. Follow John’s dispatches from the bleeding edge of capitalism on Twitter @TMFGrgurich. The Motley Fool owns shares of Citigroup and JPMorgan Chase.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

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!