Citigroup Has Been in the News a Lot Lately. Buy the Hype?
If you follow banking news -- and maybe even if you don't -- you have likely seen Citigroup (NYSE: C) popping up a lot lately, which might make you wonder if this is a stock you should consider buying. Citigroup is America's third-largest bank, with close to $2 trillion in total assets. It's also trading at roughly 60% of tangible book value at Thursday afternoon's prices, giving it a lot of potential upside. Let's take a look at all the recent Citigroup news and what it means for investors.
Citigroup has faced a mixed bag of headlines lately. Earlier this month, the bank tapped Jane Fraser to become its next CEO, making it the first megabank to hire a woman as chief executive. That followed other positive news this year showing Citigroup's dedication to environmental, social, and governance (ESG) issues, a fast-growing segment gaining traction among investors.
But Fraser's promotion has been sandwiched between a lot of bad news. In August, Citigroup accidentally wired $900 million to several creditors of the cosmetics brand Revlon; the lenders were suing Revlon over an issue relating to a $1.8 billion loan that Citigroup helped set up in 2016. Then, to complicate matters, the bank sued two of the lenders for not returning the portion of money they received due to the error.
Source Fool.com
