Read the Citigroup case. Answer the following:
(1) Summarize the key facts of the case. Take some care — be selective but not too brief.
(2) What was the rationale for the merger of Citi and Travelers? Was this a solid rationale? Why/why not?
(3) Discuss the role of leadership in explaining some of the outcomes of the changes experienced by Citigroup.
(4) How did choices made by Citigroup relate/contribute to the global financial crisis of 2008?
(5) Make sure you can explain in your own words each of the following terms/concepts: securitized instruments, mortgage-backed securities, write down, toxic assets, subprime mortgages, highly leveraged
(6) add definition of: credit default swaps
(7) Summarize the year-long lead-up to the financial crisis of October 2008 (not from the perspective of Citi, but generally). Explain several of the contributing factors and how they intersected (i.e. influenced each other).
(8) Was Citigroup “too big to fail”?
(9) What factors contributed to the failure?