citi cib advanced risk issues

Advanced Risk IssuesAdvanced Risk Issues

“Seeing Around Corners”“Seeing Around Corners”

Summary and ConclusionsSummary and ConclusionsWhy were We Here?Why were We Here?

IstanbulIstanbulMarch, 2007March, 2007

Revenue Growth Revenue Growth and and

Risk Management Risk Management in ain a

Complex Global BankComplex Global Bank

Citi CIBCiti CIBAdvanced Risk IssuesAdvanced Risk Issues

The Economist – Survey of International The Economist – Survey of International Banking – May, 2006Banking – May, 2006

Banks the world over are scrambling to become Banks the world over are scrambling to become larger…larger…

But at some point diseconomies of scale will also But at some point diseconomies of scale will also start creeping in, with management finding it harder start creeping in, with management finding it harder to summarize everything that is going on in the bankto summarize everything that is going on in the bank

This includes the neglect of concealed risks and the This includes the neglect of concealed risks and the failure of internal controlsfailure of internal controls

This problem afflicted Citigroup in 2002 – 2005 when This problem afflicted Citigroup in 2002 – 2005 when it was rocked by a string of compliance problemsit was rocked by a string of compliance problems

Risk management, the rock on which any Risk management, the rock on which any contemporary bank rests, scarcely existed as a contemporary bank rests, scarcely existed as a profession outside the insurance industry until the profession outside the insurance industry until the 1970’s1970’s

Moody’s 2005 Securities Industry OutlookMoody’s 2005 Securities Industry Outlook

““For all global trading and market-making firms, highly-For all global trading and market-making firms, highly-skilled risk management - broadly defined - is an skilled risk management - broadly defined - is an absolute necessity for the business model.absolute necessity for the business model.

““A robust corporate culture remains critical for A robust corporate culture remains critical for balancing short-term competitive pressures and the balancing short-term competitive pressures and the long-term interests of a franchise. long-term interests of a franchise.

In a hotly competitive arena, fraught with litigation and In a hotly competitive arena, fraught with litigation and regulatory risk, an investment bank needs a collective regulatory risk, an investment bank needs a collective sense of right and wrongsense of right and wrong.

Advanced Risk Issues Advanced Risk Issues The Market’s View of Risk Management

“The financial innovations that have made risk transfer and hedging possible have increased the complexity of risk management, both financial and operational.”

“If a bank can establish risk management as a core competency, I think that’s something the market would value.”

“No model,, and no software package, no matter how sophisticated, can ever replace the skills of a trained, experienced and conscientious risk manager”

Advanced Risk Issues The Market’s View of Risk Management

“NAB’s internal control systems failed at every level to detect the irregular currency options trading. As long as the business unit turned a profit, other shortcomings could be overlooked.”

“Barings – There may be a temptation to view this debacle as being caused by just one individual – the “rogue trader” – but in reality the fiasco should be attributed to the underlying structure of the firm, and particularly to the lack of internal checks and balances.”

Private leveraged funds have become an important source of protection to regulated institutions by being large sellers of credit insurance in the rapidly growing market for credit default swaps

These changes in market participants have occurred in conjunction with a dramatic acceleration in number and type of derivative instruments.

These developments have likely had the important impact of allowing for a more efficient distribution and more effective management of risk.

All of these changes should move the market in the direction of fostering the efficient allocation of credit and capital formation, and thus enhancing the economy’s real growth potential.

Stress testing and scenario analysis have become central to the process of risk management

Federal Reserve Written AgreementFederal Reserve Written AgreementJuly, 2003July, 2003

“NOW, THEREFORE, Citigroup and the Reserve Bank hereby agree as follows:…….within 60 days of this Agreement, Citigroup shall submit to the Reserve Bank an acceptable written legal and reputational risk management program applicable to Citigroup and its subsidiaries.

Fed Ties the Hands of CitigroupNo Major Acquisitions Allowed Until Its Problems Are Fixed

THE WALL STREET JOURNALPage “C1”March 18, 2005

The Federal Reserve barred Citigroup Inc. from major The Federal Reserve barred Citigroup Inc. from major acquisitions until the company fixes regulatory acquisitions until the company fixes regulatory problems that have gotten the financial-services problems that have gotten the financial-services giant in trouble around the world, raising the stakes giant in trouble around the world, raising the stakes for Chief Executive Charles Prince in his drive to for Chief Executive Charles Prince in his drive to overhaul the bank's ethics.overhaul the bank's ethics.

"CLAWS AND FANGS" Business Week October 4, 2004

"The constraint on Citi's growth is not its market size, "The constraint on Citi's growth is not its market size, nor its capital," says Bernstein's Mason. "It may well nor its capital," says Bernstein's Mason. "It may well be that Citi can't achieve its growth ambitions be that Citi can't achieve its growth ambitions because it cannot safeguard itself properly from because it cannot safeguard itself properly from regulatory and reputation risk."regulatory and reputation risk."

Moody's Investors Service upgrades the ratings of Citibank N.A. to Moody's Investors Service upgrades the ratings of Citibank N.A. to Aaa for long-term deposits and to A for financial strength Aaa for long-term deposits and to A for financial strength September 26, 2006 September 26, 2006

The firm has made progress on strengthening culture and The firm has made progress on strengthening culture and improving controls, and has not suffered a major control improving controls, and has not suffered a major control problem since having to close its Japanese private bank. problem since having to close its Japanese private bank.

However , management must continue to solidify cultural However , management must continue to solidify cultural change, notwithstanding shareholder pressure for earnings change, notwithstanding shareholder pressure for earnings growthgrowth

Moody's assessed the effectiveness of risk controls, Moody's assessed the effectiveness of risk controls, measurement and information infrastructure as well as the measurement and information infrastructure as well as the firm's risk governance and culture. firm's risk governance and culture.

Strong earnings generation from an extraordinarily Strong earnings generation from an extraordinarily diverse set of businesses allows Citigroup Inc. (Citi; diverse set of businesses allows Citigroup Inc. (Citi; AA/Stable/A-1+) to cover some of the high risks that AA/Stable/A-1+) to cover some of the high risks that it incurs. it incurs.

Citi has also achieved a substantial change in its Citi has also achieved a substantial change in its control environment in the aftermath of a wave of control environment in the aftermath of a wave of heavy litigation expenses and criticism of its heavy litigation expenses and criticism of its business practices from regulators around the business practices from regulators around the world.world.

“Credit Matters Today”

March 5, 2007

Citigroup Risk Management PrioritiesCitigroup Risk Management PrioritiesDave Bushnell - 2005Dave Bushnell - 2005

The need to balance effectively between risk and The need to balance effectively between risk and rewardreward

The real key to superior performance is to effectively The real key to superior performance is to effectively manage risk, not try to eliminate itmanage risk, not try to eliminate it

““No” is an unacceptable answer when evaluating the No” is an unacceptable answer when evaluating the commitment of resources to a new project (deal). commitment of resources to a new project (deal). “No, because…” and “Yes, if…” are much better “No, because…” and “Yes, if…” are much better answersanswers

Changes in management’s appetite for and approach Changes in management’s appetite for and approach to the management of risk in recent years have been to the management of risk in recent years have been focused on operational risk, not market or credit riskfocused on operational risk, not market or credit risk

As long as management is making the right specific As long as management is making the right specific (local) risk related decisions, global risk is a (local) risk related decisions, global risk is a manageable taskmanageable task

Citigroup Risk Management PrioritiesCitigroup Risk Management PrioritiesDave Bushnell - 2005Dave Bushnell - 2005

Risk has come to be seen increasingly as a Risk has come to be seen increasingly as a profession…at the same time the firm is trying to rotate profession…at the same time the firm is trying to rotate people from the businesses in an out of the risk people from the businesses in an out of the risk functionfunction

Citi personnel have to date simply not been equipped Citi personnel have to date simply not been equipped for what Citi is today, and for how different their for what Citi is today, and for how different their responsibilities are in terms of safeguarding the firm’s responsibilities are in terms of safeguarding the firm’s reputationreputation

Citigroup Risk Management PrioritiesCitigroup Risk Management PrioritiesJessica Palmer – January, 2006Jessica Palmer – January, 2006

Suitability will be an ever-important issue going Suitability will be an ever-important issue going forwardforward

Hedge Funds moving into Asia and we may not have Hedge Funds moving into Asia and we may not have proper margin monitoring system in place. Get ready proper margin monitoring system in place. Get ready for growth or don't participatefor growth or don't participate

Derivatives: new initiative by lawyers to say banks Derivatives: new initiative by lawyers to say banks were "aiding and abetting" helping client to hide were "aiding and abetting" helping client to hide issues which may have been illegal. Client claims he issues which may have been illegal. Client claims he didn't understand the deal and the blame falls totally didn't understand the deal and the blame falls totally on the bank that structured the transaction.on the bank that structured the transaction.

…………or "you structured a deal that I really didn't or "you structured a deal that I really didn't understand or realize I was breaking the law when understand or realize I was breaking the law when we transacted it, so it's your fault not mine."we transacted it, so it's your fault not mine."

Citigroup Risk Management PrioritiesCitigroup Risk Management PrioritiesBebe Duke – January, 2007Bebe Duke – January, 2007

Suitability is the key risk issueSuitability is the key risk issue

Market products are critical for revenue growthMarket products are critical for revenue growth

– - commodities- commodities

– - credit derivatives- credit derivatives

– - "bespoke" interest rate derivatives and - "bespoke" interest rate derivatives and "exotics""exotics"

Need to raise awareness that the only way to Need to raise awareness that the only way to make money is to how to get to the yes.make money is to how to get to the yes.

Client First InitiativeClient First Initiative

Advanced Risk IssuesSunday, 4 March – Participants’ Concerns

Citi’s Capital and Capital Citi’s Capital and Capital Models ROEC / RORCModels ROEC / RORC

Risk Accounting and ModelsRisk Accounting and Models

Regulatory – MIFIDRegulatory – MIFID

Basel IIBasel II

Risk AversionRisk Aversion

Risk “Lite” / Relaxed Credit Risk “Lite” / Relaxed Credit ProcessProcess

LiquidityLiquidity

SME RiskSME Risk

Business vs Independent RiskBusiness vs Independent Risk

– BalanceBalance

CDS – Fiduciary and Ops RiskCDS – Fiduciary and Ops Risk

Hedge FundsHedge Funds

ComplacencyComplacency

Opportunity CostOpportunity Cost

Political RiskPolitical Risk

Global PortfolioGlobal Portfolio

Citi “Swings”Citi “Swings”

Globalization of MarketsGlobalization of Markets

ComplianceCompliance

SystemsSystems

Advanced Risk IssuesAdvanced Risk IssuesCourse Course OverviewOverview

Basic Credit Risk AnalysisBasic Credit Risk Analysis

– Industry Structure and Company Risk AnalysisIndustry Structure and Company Risk Analysis

– Balancing Business Risk and Financial Risk (Key Balancing Business Risk and Financial Risk (Key Success Factor Exercise)Success Factor Exercise)

– Identifying Winners and Losers. Identifying Winners and Losers.

– Early Warning Signs / Problem RecognitionEarly Warning Signs / Problem Recognition

– Avon Pharmaceutical CaseAvon Pharmaceutical Case


Assessing management ability, business strategy, and Assessing management ability, business strategy, and controlscontrols - and the issue of “who’s fault is it?” - and the issue of “who’s fault is it?”

– Management Competence and Business Strategy Management Competence and Business Strategy (Corning Case)(Corning Case)

– Business Controls (Citibank Dublin Case)Business Controls (Citibank Dublin Case)


Deal Structure and Risk Deal Structure and Risk

- Poland A2 Motorway Case- Poland A2 Motorway Case

Converging Risk Issues – Credit Risk, Market Risk, Country Converging Risk Issues – Credit Risk, Market Risk, Country Risk, Derivatives RiskRisk, Derivatives Risk

How Does Citi “do risk”?How Does Citi “do risk”?

– Underwriting risk and conflict management Underwriting risk and conflict management

– Market risk / Convergence RiskMarket risk / Convergence Risk

– Global portfolio managementGlobal portfolio management

– Operational riskOperational risk

– Country riskCountry risk

Advanced Risk Issues Advanced Risk Issues Presentations to Illustrate “How Citi Manages Presentations to Illustrate “How Citi Manages

Risk”Risk”

CIB Risk Management – Colin ChurchCIB Risk Management – Colin Church

Global Portfolio Management – Bill HartmannGlobal Portfolio Management – Bill Hartmann

Market Risk / Convergence Risk – Dominic WallaceMarket Risk / Convergence Risk – Dominic Wallace

Operational Risk – Jaidev IyerOperational Risk – Jaidev Iyer

Country Risk - Doug SmeeCountry Risk - Doug Smee

Banking in Turkey and EMEA – Steve BideshiBanking in Turkey and EMEA – Steve Bideshi

Problem Recognition / Early Warning Signs - Austin ErwinProblem Recognition / Early Warning Signs - Austin Erwin

Derivatives Risk – Patrick PancoastDerivatives Risk – Patrick Pancoast

Conflict Management / Franchise Risk – Rashmini YogaratnamConflict Management / Franchise Risk – Rashmini Yogaratnam

Advanced Risk IssuesAdvanced Risk IssuesQuotesQuotes of the Week of the Week

Anything that could possibly happen has already happened to usAnything that could possibly happen has already happened to us– Jaidev IyerJaidev Iyer

Active portfolio management, which has been discussed for years, in Active portfolio management, which has been discussed for years, in now an industry-wide activitynow an industry-wide activity– Bill HartmannBill Hartmann

Is it marked to market or marked to guess?Is it marked to market or marked to guess?– Patrick PancoastPatrick Pancoast

Don’t mix high business risk with high financial riskDon’t mix high business risk with high financial risk– Arnie ZiegelArnie Ziegel

History tells us that we are creating tomorrow’s problems todayHistory tells us that we are creating tomorrow’s problems today– Bill HartmannBill Hartmann

If you every hear the word “miracle”, it’s time to sell– Doug Smee

We are all able to put the client first more readilyWe are all able to put the client first more readily– Rashmini YogaratnamRashmini Yogaratnam


If you’re a sophisticated fixed income investor, you care about If you’re a sophisticated fixed income investor, you care about what happens to your investment in the event of a defaultwhat happens to your investment in the event of a default

– Bill HartmannBill Hartmann If the numbers you see are scaring you, then you should be If the numbers you see are scaring you, then you should be

really scared about the numbers you don’t seereally scared about the numbers you don’t see

– Doug SmeeDoug Smee It is not possible to do a rigorous statistical stress test. We It is not possible to do a rigorous statistical stress test. We

underestimate the probability of very large eventsunderestimate the probability of very large events

– Dominic WallaceDominic Wallace There are three types of client objectives: Non-selective risk There are three types of client objectives: Non-selective risk

reduction, opportunistic risk adjustment, image enhancementreduction, opportunistic risk adjustment, image enhancement

– Patrick PancoastPatrick Pancoast It’s not just KYC, think about who you’re selling to…It’s not just KYC, think about who you’re selling to…

– Rashmini YogaratnamRashmini Yogaratnam


Many or most major business problems or losses are the result of a Many or most major business problems or losses are the result of a flawed business strategyflawed business strategy– Arnie Ziegel, Jaidev IyerArnie Ziegel, Jaidev Iyer

How do you deal with transparency issues in a country like Russia?– Steve Badeshi

How many lawsuits are there every year against Citigroup by How many lawsuits are there every year against Citigroup by employees?employees?– Jaidev IyerJaidev Iyer

The concept of “originate and distribute” is now beginning to be The concept of “originate and distribute” is now beginning to be reflected in our portfolio loss performance statisticsreflected in our portfolio loss performance statistics– Austin ErwinAustin Erwin

We can still grow the business even if we face an economic downturnWe can still grow the business even if we face an economic downturn– Steve BadeshiSteve Badeshi

Risk is holisticRisk is holistic– Colin ChurchColin Church

The secondary loan market is a market by appointmentThe secondary loan market is a market by appointment– Bill HartmannBill Hartmann


Companies go bankrupt because they 1) run out of cash, 2) fear that they’ll run Companies go bankrupt because they 1) run out of cash, 2) fear that they’ll run out of cash, or 3) their suppliers of liquidity fear that they’ll run out of cashout of cash, or 3) their suppliers of liquidity fear that they’ll run out of cash– Arnie ZiegelArnie Ziegel

Citigroup has the ability to take risk greater than any other financial institution Citigroup has the ability to take risk greater than any other financial institution in the worldin the world– Colin ChurchColin Church

Whose fault is it? You gave me the money / let me do it / told me to do the tradeWhose fault is it? You gave me the money / let me do it / told me to do the trade– Arnie ZiegelArnie Ziegel

The Unknown, UnknownsThe Unknown, Unknowns– Dominic WallaceDominic Wallace

This is not so much about the management of risk, but the management of a This is not so much about the management of risk, but the management of a business in a risk adjusted mannerbusiness in a risk adjusted manner– Jaidev IyerJaidev Iyer

We’re held to a different standardWe’re held to a different standard– Rashmini YogaratnamRashmini Yogaratnam

No longer should we love assets!No longer should we love assets!– Steve BideshiSteve Bideshi


Bankers and Clients often rationalize away the signs of weaknessBankers and Clients often rationalize away the signs of weakness

– Austin ErwinAustin Erwin The longer nothing happens here, the trap just keeps getting tighter and tighterThe longer nothing happens here, the trap just keeps getting tighter and tighter

– Colin ChurchColin Church Investors look at us like a giant warehouseInvestors look at us like a giant warehouse

– Bill HartmannBill Hartmann The known unknowns, unknown unknownsThe known unknowns, unknown unknowns

– Dominic WallaceDominic Wallace We very rarely turn down deals outright, we try to figure out how to get them We very rarely turn down deals outright, we try to figure out how to get them

donedone

– Rashmini YogaratnamRashmini Yogaratnam By identifying early we both protect the balance sheet and create opportunitiesBy identifying early we both protect the balance sheet and create opportunities

– Austin ErwinAustin Erwin The market is willing to pay for diversificationThe market is willing to pay for diversification

– Bill HartmannBill Hartmann We do too much too late, after doing too little too earlyWe do too much too late, after doing too little too early

– Doug SmeeDoug Smee

Advanced Risk Issues Advanced Risk Issues QuotesQuotes of the Week of the Week

Credit Risk Managers tend to be client experts, while market risk managers tend to be Credit Risk Managers tend to be client experts, while market risk managers tend to be product expertsproduct experts

– Dominic WallaceDominic Wallace Anything that is unsustainable will end. The longer it takes to end, the bigger the crash will Anything that is unsustainable will end. The longer it takes to end, the bigger the crash will

be when it happens.be when it happens.


The people who should be saying no are saying yes, and the people who should be saying The people who should be saying no are saying yes, and the people who should be saying yes are saying noyes are saying no

– Dominic WallaceDominic Wallace Do not try to rationalize away increasing danger signals Do not try to rationalize away increasing danger signals – instead, try to find out why.– instead, try to find out why.


Chuck Prince doesn’t want Tom Maheras to lose more than $100 million on a bad day.Chuck Prince doesn’t want Tom Maheras to lose more than $100 million on a bad day.

– Dominic WallaceDominic Wallace

It’s not just about risk management anymore, it’s about capital managementIt’s not just about risk management anymore, it’s about capital management

– Bill HartmannBill Hartmann

We love you, we love you, we love you……….. we hate youWe love you, we love you, we love you……….. we hate you

– Bill HartmannBill Hartmann

Advanced Risk Issues Advanced Risk Issues ThemesThemes from the week….. from the week…..

Credit Risk is becoming a Traded ProductCredit Risk is becoming a Traded Product

Effective Risk Management is a tool for business Effective Risk Management is a tool for business growthgrowth

The banking industry model is changing from The banking industry model is changing from “originate and hold” to “originate and distribute the “originate and hold” to “originate and distribute the asset or the risk”asset or the risk”

Most deals involve one or more elements of Most deals involve one or more elements of Operational Risk, Franchise Risk, Market Risk and Operational Risk, Franchise Risk, Market Risk and Credit Risk – the boundaries are evaporating, risks are Credit Risk – the boundaries are evaporating, risks are convergingconverging

Suitability and Appropriateness are increasingly Suitability and Appropriateness are increasingly becoming major risk factorsbecoming major risk factors

Advanced Risk IssuesAdvanced Risk IssuesThemesThemes from the week….. from the week…..

Growing complexity of the business is accelerating Growing complexity of the business is accelerating and inevitableand inevitable

Reputation risk and Franchise risk are inherent in Reputation risk and Franchise risk are inherent in almost every business activity of Citigroupalmost every business activity of Citigroup

Every aspect of our business has potential of Every aspect of our business has potential of creating a loss due to an execution problem in the creating a loss due to an execution problem in the systemsystem

Good planning and risk identification can minimize Good planning and risk identification can minimize the over-reaction to a risk event and the potential the over-reaction to a risk event and the potential impairment of the value of a particular franchiseimpairment of the value of a particular franchise

Advanced Risk Issues Advanced Risk Issues ThemesThemes from the week….. from the week…..

Don’t add Financial Risk where there is high Business Don’t add Financial Risk where there is high Business Risk - industry and business risk drives a company’s Risk - industry and business risk drives a company’s capital structure capital structure

Choose clients carefullyChoose clients carefully Many business problems arise from inadequate, Many business problems arise from inadequate,

inappropriate, or ill managed strategiesinappropriate, or ill managed strategies Citigroup is held to a higher standard, and not expected Citigroup is held to a higher standard, and not expected

to “aid or abet” improper or inappropriate loans, to “aid or abet” improper or inappropriate loans, investments, trades, etc.investments, trades, etc.

Advanced Risk Issues -Advanced Risk Issues -ThemesThemes from the from the week…..week…..

Active portfolio management mitigates portfolio riskActive portfolio management mitigates portfolio risk

Citi has multiple constituents when considering risk Citi has multiple constituents when considering risk – issuers, investors, regulators, rating agencies– issuers, investors, regulators, rating agencies

Skepticism is an inherent part of risk assessmentSkepticism is an inherent part of risk assessment

Why do smart bankers sometimes do things that, in Why do smart bankers sometimes do things that, in retrospect, just don’t make sense?retrospect, just don’t make sense?

Advanced Risk IssuesAdvanced Risk IssuesBankers and Risk ManagementBankers and Risk Management

Bankers Manage Client Relationships in order to provide Bankers Manage Client Relationships in order to provide insight, early warning, and preferred positioninginsight, early warning, and preferred positioning

Bankers are Advocates – For Issuers and InvestorsBankers are Advocates – For Issuers and Investors

Bankers must be Client Advisors rather than RespondersBankers must be Client Advisors rather than Responders

Bankers must be Skeptics (Seeing Around Corners)Bankers must be Skeptics (Seeing Around Corners)

Bankers are Responsible to Multiple Constituencies:Bankers are Responsible to Multiple Constituencies:

– shareholdersshareholders

– clientsclients

– regulatorsregulators

– InvestorsInvestors

Why Were We Here?Why Were We Here?

● Excellent risk management creates shareholder Excellent risk management creates shareholder value and can be a major driver of high quality value and can be a major driver of high quality revenue growthrevenue growth

● Excellent risk management for revenue growth Excellent risk management for revenue growth requires:requires:

● ““Seeing around corners” - finding risk where Seeing around corners” - finding risk where we didn’t know or think it existed, and the we didn’t know or think it existed, and the convergence of types of risksconvergence of types of risks

● Skepticism to balance risk with the need to Skepticism to balance risk with the need to generate revenue growthgenerate revenue growth

● Identifying potential flaws of business Identifying potential flaws of business strategies – internal and clientsstrategies – internal and clients

● A framework for choosing clients very carefullyA framework for choosing clients very carefully

● Understanding the increasing complexity of Understanding the increasing complexity of productsproducts


Excellent risk management for revenue growth Excellent risk management for revenue growth requires:requires:

● Understanding the reputation and franchise Understanding the reputation and franchise implications of business decisionsimplications of business decisions

● Understanding that we will never see all risks, Understanding that we will never see all risks, so weso we

– Structure away from riskStructure away from risk

– Choose clients carefullyChoose clients carefully

– Pursue active portfolio managementPursue active portfolio management

– Create and maintain a superb control Create and maintain a superb control culture and business cultureculture and business culture

– Create and maintain systems for monitoring Create and maintain systems for monitoring riskrisk


To review how Citigroup is managing risk, including To review how Citigroup is managing risk, including active portfolio management and reputation / active portfolio management and reputation / franchise riskfranchise risk

Growth demands MORE risk and MORE reward, and Growth demands MORE risk and MORE reward, and it’s up to you to get the balance rightit’s up to you to get the balance right

We can grow and still “stick to the fundamentals”, We can grow and still “stick to the fundamentals”, often using new means of distributing riskoften using new means of distributing risk

To remind you that excellent bankers don’t hesitate To remind you that excellent bankers don’t hesitate to say “I’m sorry, but I just don’t understand….”to say “I’m sorry, but I just don’t understand….”

To recognize that we’re held to a higher standard, To recognize that we’re held to a higher standard, not just because Citi is big, but because Citi is the not just because Citi is big, but because Citi is the leader……………leader……………

Advanced Risk Issues 2007Advanced Risk Issues 2007Seeing Around CornersSeeing Around Corners

Revenue Growth and Risk Management Revenue Growth and Risk Management

in a in a

Complex Global BankComplex Global Bank

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