Things are getting better slowly,in the view of Citigroup Chairman Dick Parsons.Some people would call it anemic,but it's growth nonetheless.
It's not surprising to Mr.Parsons.What we're seeing is what you could have expected.People have to delever,and that's gonna impress some slowness on the economy.
Loan demand is down.Businesses as well as consumers are tightening their belts,while underwriting standards have gone up.Citi loaned as much in Q1-Q3 to small business as they did in all of last year,but the underwriting standards mean some people who used to get loans can't get them now.
It's axiomatic that economies crash from the bottom up,and heal from the top down.The market is coming back down to those who can't get credit,however.There's a restoraion of equilibrium going on.
Businesses are asking how do I adjust my own sales to catch the wind rather than be buffeted by the wind?We need a comprehensive economic plan,Mr.Parsons believes.
While Dick Parsons is Chairman,Vikram Pandit is CEO of Citigroup.The U.S. government has now fully exited its bailout of Citi,making 12 billion dollars in profit for the taxpayers.
Citigroup(C)
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