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Citigroup chief says worst of crisis is over
Hugo Duncan07.05.08
Sir Win Bischoff, the City grandee-turned-chairman of Wall Street giant Citigroup, is the latest top banker to declare the worst of the credit crunch is over.
"I think 2008 is not going to be easy," he said. "But I think there are sufficient numbers of people working very hard to get [the financial system] out of this, and I think we will be able to do so."
Citi, the world's biggest bank, was one of the worst-hit by the subprime crisis, and the billions of dollars it was forced to write down cost Charles "Chuck" Prince his job as chairman and chief executive. Sir Win took the chair in December with head of investment banking Vikram Pandit elevated to chief executive.
The bank has raised more than $37 billion (£18.8 billion) in the past five months as it repairs the damage to its balance sheet. Sir Win's comments echo those by banking executives during last month's reporting season, including Lehman Brothers chief executive Richard Fuld who told shareholders that "the worst is behind us" in the credit squeeze.
Others were just as bullish although JPMorgan Chase chief Jamie Dimon, who masterminded the rescue of Bear Stearns, warned of a weak economy and of stress in the markets for "the remainder of the year or longer".
