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 10 Largest Pharmaceutical Companies In the World

The 10 Most Expensive Android Apps

The 9 Most Expensive Designer Bags in the World

The 7 Most Expensive Real Estate in the World

The 10 Most Expensive eBay Items Ever Sold

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

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!