Citigroup trading drop shows revival obstacles

A sharp drop in bond trading revenue pushed Citigroup Inc (C.N) fourth-quarter profit far below expectations, highlighting Chief Executive Vikram Pandit's challenges in fully reviving the bank.

The earnings miss by Citigroup, which only survived the financial crisis thanks to a massive taxpayer bailout, stoked concern that the bank has yet to resolve the operational weaknesses that have plagued it for years.

Shares of the No. 3 U.S. bank -- which have rallied strongly over the past year as the the U.S. government gradually sold off its stake in the bank -- were down 6 percent in midday trading.

The bank's fixed-income revenue alone dropped 58 percent from the third quarter -- compared to a 7.9 percent drop at larger rival JPMorgan Chase & Co (JPM.N), which reported its fourth-quarter earnings on Friday.

Read Full Article from Reuters

- Posted: 2011-01-18 11:05:16

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