Citigroup (C) may not be able to control expenses, but its sure can buy companies. The big US financial service company has just bought British online banking outfit Egg from Prudential (PUK). The price was apparently 575 million pounds. For 2006, Egg lost 145 million pounds from operations.
Citi seems to be taking a tack opposite of what most of its investors want. The company’s stock has sharply underperformed US rivals including Bank of America (BAC), JP Morgan Chase (JPM) and Goldman Sachs (GS).
Citi’s CEO, Mr. Prince, has shown little or no adroitness at cutting costs, something the market has been calling for over the past several quarters.
But, he can spend the bank’s money on acquisitions like a real pro.
Douglas A. McIntyre can be reached at [email protected]. He does not own securities in companies that he writes about.
ALERT: Take This Retirement Quiz Now (Sponsored)
Take the quiz below to get matched with a financial advisor today.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Take the retirement quiz right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
