Citigroup and Bank of America in Comparison
Written by Lars Nielsen
Citigroup and Bank of America, numbers eight and nine, respectively on the Fortune 500 list are two of the nations largest banking institutions. Together these two organizations generated over 263 billion dollars in revenue in 2007.
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 ...view middle of the document...
Institutions that were not depository have the ability, because of technology, to take deposits and become an additional competitor.
International positions can also add unfavorable risk toward financial institutions. Politics and diplomatic developments, currency fluctuation, nationalization and legislation all affect the ability to do business in foreign countries. Trade in other countries and can be more volatile and less liquid preventing the removal of assets in tough times for reinvestment.
Citigroup on the other-hand generated over 146 billion dollars in 2007. Currently Citigroup is made up of 12 different companies ranging from financial services to mortgages to credit cards to investment bank research. Citigroup has over 325,000 employees in over 100 countries with over 200 million customer accounts. Revenues have grown for Citigroup year after year. With revenue in 2003 of 71 billion 83 billion in 2005 and in 2007 at 146 billion, Citigroup has the highest revenues of any financial firm on the Fortune 500 list.
However, number nine on the Fortune 500 list is Bank of America who generated over 117 billion dollars in revenue in 2007. Bank of America gets it roots back in 1784. Some of the first members of the bank were Paul Revere, Henry Knox and John Hancock. In the early 1900’s, a bank by the name of Bank of Italy had been doing business in California and doing quite well with a banking system of branches, something new to banking at the time. In 1929, Bank of America, Los Angeles, merges with Bank of Italy to become BankAmerica (Bank of America, 2008). With the addition of checking technologies such as automatic check processing, account numbers and Magnetic Ink Character Recognition, Bank America quickly became the world’s largest bank by the 1970’s. In 1997...