Citigroup and Bank of America: Analysis

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A) Citigroup and Bank of America, numbers eight and nine respectively on the Fortune 500 list, can be understood as a leader and laggard in commercial banking. Citigroup - Citigroup was formed in 1998, a culmination of ten separate businesses into a 146 billion dollar organization. In 1812, New York State charters City Bank of New York, by 1894; City Bank had changed its name to National City Bank of New York and become the largest bank in the United States. In 1919 City Bank becomes the first U.S. bank to accumulate 1 billion dollars in assets. In 1974 National City changes its name to Citicorp to better suit its global businesses. By 1996 Citicorp was the again the largest banking institution in the United States and was the largest issuer and servicer of credit cards in the world. In 1998 Citicorp and Travelers Group merged their talents to become Citigroup which in 2006 had over 89 billion dollars in revenues. A company as large as Citigroup, with such a diverse business structure will have areas where risk is a factor that can stifle the development of the business. Economic conditions can have a adverse affect on Citigroup's holdings, considering their holdings in fixed income, currency, commodity and equity markets. The revenue generated from these portfolios is directly affected by economic conditions. These conditions also affect interest rates, unemployment and consumer confidence, all of which are can affect the ability to create revenue. Competition is also
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