Student loans are no longer a major part of Citibank’s business. In fact, they sold most of their loans to Discover in 2009. The direct fallout will be minimal, but they will have to institute a clear policy of transparency moving forward if they’re going to encourage new investments. There will probably need to be a few changes in top positions at the bank to convince investors they’re making the right moves to clean up their act.
2018 and Beyond
The first quarter of 2018 will be critical for Citibank. With the right approach, they can survive and prosper, but it will require a change to their corporate culture. Other major corporations have gone through painful transitions and turned things around. There’s no reason to believe that one of America’s biggest banks can’t do the same, but they do have a relatively short period to work with. Positive steps need to begin immediately and they need to be highly visible.
