“Citigroup Inc (NYSE:C) stock is maintaining its strength, after the Fed announced it would hold the line on interest rate hikes. Now the big question for investors seems to concern what Citigroup plans on doing for profit. The winds of financial regulation are blowing mightily through Washington, so cautious investors wonder just how this will affect Citigroup. The financial regulation that is expected to come later hasn’t hit just yet. Therefore Citigroup is maintaining certain proprietary trading operations that are contributing to the bottom line. Citigroup moved most of these units to Citi Holdings, where they’re not expected to get any additional capital from C, but in the mean time some of these units are still making money. Financial regulation could bring an end to these operations forever, but in the mean-time, a company has gotta eat,” Steve Ferguson Reports From Times Of The Internet.
Ferguson goes on to say, “One sector that Citi wants to earn more money from is the hot-earning ETF division. ETFs are now extremely popular with investors and Citigroup is upgrading its back office support for the products. Yesterday the company announced its appointment of Jeffrey McCarthy as Global ETF Product Head in its Securities and Fund Services business (SFS).”
“With its global network and reach, Citi is uniquely positioned to help promote ETF product innovation and distribution in domestic and international markets,” said Neeraj Sahai, Global Head of Citi’s Securities and Fund Services, in a statement. “Jeff’s extensive market experience and product expertise will complement Citi’s emerging market capabilities and help enable our asset manager clients launch new ETF products on a comprehensive basis.”
“Citigroup already offers a dizzying array of services to the ETF sales channels, and looks ready to expand even further into the arena. With ETFs growing rapidly, Citi has identified the area as one with fast growth potential. In order to continue to engineer a turnaround, that’s exactly what C needs to do. They have to abandon the notions of what businesses were bringing in big cash in the past, and move on to greener pastures of what is actually making money now. Citi’s Global Transaction Services is one example of the reach the company still maintains. This division has over 65,000 customers and $12.1 trillion of assets under management,” Ferguson Reports.
See The Full Story: HERE