Citigroup Clarity Chronicles

Citigroup attempts to dig its way out of a reputational mess with a fairly slick 2004 annual report. Citigroup has incurred the wrath of regulators in Japan and is writing checks for billion dollar settlements for Enron Worldcom and other major failures. The focus of the annual report is their so called legacy of integrity and expertise. They trace their roots back to 1812 and weave the story of small, plucky, savvy and helpful to customers. Chuck Prince's letter refers to the problems in the following fashion...."These failures do not reflect the kind of company we are or want to be." Chuck you are bad. The Japanese regulator yanked your ticket. Given Citi's history in Japan thats some failure. The lawsuits that you are settling up are not caused by rogue traders. Those big deals were encouraged by your corporate culture, vetted through your entire risk management system and most likely had senior executive and board approval. The 2004 annual report is designed to act as both an anaesthetic and a distraction from past failures. What is really needed is some transparency on how you will manage your