Firstly, the Credit card problem. The Credit card facility is a high risk credit facility. Problem aroused when money was overspent and people were unable to repay for the credit used and only 30 percent of the people were able to make monthly repayment.The second problem was stakeholders had different values and priorities. The aim was to avoid a financial crackdown and strengthen the banks so that they can lend money. However this did not happen because of the strict regulations and lending practices. Thirdly, Citibank laid off allot of its workers to reduce the operational costs but what it resulted in was a bad image in the public eyes rather than creating a true value for them. The forth issue were the security issues. Citibank outsourced its information to India where fraud cases were numerous and resulted in a huge loss. The fifth issue was the downfall of the share price because in order to reduce piling up losses from its credit card business, Citibank allegedly closed a limited number of co-branded MasterCard accounts including Shell, Citgo etc. Afterwards came the issue of the mission statement because Citibank applied a scenario analysis instead of a single solution which caused its downfall.
Besides the problems faced by Citibank, there were some problems as well.
The first problem was the financial losses faced by Citibank and their asset impairment. Approximately, Citigroup had incurred losses of around $30 billion, causing severe liquidity problems. Secondly, the large scale job cuts because in order