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Breakingviews: Dimon’s Return, Citi’s Exit

Tuesday, October 14, 2014 - 03:17

While JPMorgan’s boss is back after battling cancer to face a new set of challenges, Citi used hyperbole to describe a minor pullback in its consumer business as ''transformational.''

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Since that quote a bank getting ticking off with a vengeance this morning we've had three of them JPMorgan Citigroup. And Wells Fargo first particularly Jamie Dimon spent away and we can stream and he's back but his work cut out. What he's been quite shockingly. Present in the office apparently. Yeah he's he's back I would say that means that the bank just missed earnings -- a couple of pennies ninety deal. Necessary but they had a few things going all absurdity and ended the big samples is cyber security. The twenty pro preach this cost us money rights and Italy has -- bridge at which. Wasn't too damaging it seems but it was a lot of people. -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Much of which will be that settling a foreign exchange discrete civil -- a bit Sissy what do what do what do you goto this. But pretty stunned that the investment bank. I -- us tonight looks fine if you look at adjusted earnings 14% on acting right. But he has the lowest -- -- and some of the most in revenue on fixed income six agility citizen it is can not -- camera doesn't need much capital. And yet it's not doing a great -- better than that and it's less about which -- focus that's another big. City transforming the business right. Well that's the hyperbole. If you read the -- for the summer third quarter results I mean on the results that are bit shy of what people expected but I think the interesting thing about it was a slight I mean. A transformational change of strategy but but I would argue it's not it's -- that they're exiting. Consumer businesses and eleven market settles and smallish ones -- Guam. Nicaragua. What -- -- La. You know based -- Czech Republic so it's in Japan which we -- them and they they pulled out of few countries already companies are not as it does that register put this in perspective it's 5% of the revenues for the global consumer business which is seventy. US service. It's a big step. It's certainly interesting. But it's only really -- interest in insofar as this is the beginning of the Major -- re re nationalization of the banks strategy. As we said he's done it before every I mean. Look at it also came out today there was another fifteen million dollar loss related to fraud in the Mexican that's right we just can't highlight not the one quality this year -- another was it just highlights. The difficulty in managing this business so the idea that you're. Getting out of eleven -- markets 5% of one division's revenue is really did you would say that should be just the stuff let's I wouldn't say it's a bad sign but it's not get excited not -- -- -- it -- -- in revenue and 34 million and net income mean. These -- -- -- 2.2 percent of that best of global attentive percentage point of return on assets in the southeast of -- businesses to be right. But at least they're getting the message that they need to have whittled down to become unmanageable but the idea that. Closing down a few tellers and Nicaragua is gonna help you is ludicrous and it. Thanks rob thanks Anthony will follow the bank Jennings as they come out and we'll have more breaking news into our.

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Breakingviews: Dimon’s Return, Citi’s Exit

Tuesday, October 14, 2014 - 03:17