Citigroup case

Paper instructions:
Read the Citigroup case. Answer the following:

(1) Summarize the key facts of the case. Take some care — be selective but not too brief.

(2) What was the rationale for the merger of Citi and Travelers? Was this a solid rationale? Why/why not?

(3) Discuss the role of leadership in explaining some of the outcomes of the changes experienced by Citigroup.

(4) How did choices made by Citigroup relate/contribute to the global financial crisis of 2008?

(5) Make sure you can explain in your own words each of the following terms/concepts:

securitized instruments, mortgage-backed securities, write down, toxic assets, subprime mortgages, highly leveraged

6 add definition of: credit default swaps

7 Summarize the year-long lead-up to the financial crisis of October 2008 (not from the perspective of Citi, but generally). Explain several of the contributing

factors and how they intersected (i.e. influenced each other).

8 Was Citigroup “too big to fail”?

9 What factors contributed to the failure?