Essay - Citigroup Banks on Reform Plan the Article Presents the Compromise...

Citigroup Banks on Reform Plan

***** article presents the compromise solution that Citigroup applied in order to restore its reputation with investors, after biased stock reports had caused it to lose over 20 % of their stock value throughout the year. This solution involved grouping jobs and activities into different subunits.

Indeed, ***** fact ***** Citigroup's core activity is that of an investment bank means *****, in its attempt to maximize the prof***** it obtains in this sec*****r, other company ***** such as stock research might be manipulated ***** the interest of the core activ*****y. This was the case here, however, this sort ***** dependent, unethical practices brought the immediate reaction of the regulating entities. On the other hand, the group's ***** was also significantly impacted, with ***** direct consequences ***** the group's ***** declining in value ***** the year.

The organization needed to salvage its reputation and the solution was ***** create a wholly distinct subunit in ch*****rge solely with stock research. This was, first of all, a move related to the ********** reputation. Indeed, grouping the analytical division into a sep*****rate unit will have increased its credibility and would ***** definitely created ***** illusion among investors ***** shareholders that the research division provides, once again, viable results.

*****, the creation of an independent research sub***** within the group has induced the idea (most likely valid) that the ***** subunit is independent and ***** the information it provides to ***** general audience ***** in no way influenced by decision of the *****'s management.

In ***** sense, this move was encouraged by ***** regula*****rs as well, including the New York Attorney General as a move "insul*****ting" research from investment **********, w*****h positive