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During a recent lunch meeting with Citigroup CEO Jane Fraser, Warren Buffett expressed his support for her ongoing efforts to streamline and simplify the bank.
Fraser shared details of her latest round of reorganization with Buffett, who encouraged her to continue with the initiative.
Behind-the-Scenes Conversation:
The discussion between Fraser and Buffett was revealed during a conference call with Citigroup managing directors. Fraser recounted the lunch details with Buffett, highlighting his endorsement of the bank’s restructuring efforts.
The call also hinted at additional information about the next reorganization phase, which will be shared in the coming week.
Jane Fraser spearheads Citigroup’s most significant overhaul in decades to simplify the bank’s structure, reduce bureaucracy, and enhance profitability and shareholder value.
Berkshire Hathaway’s Investment Influence:
Berkshire Hathaway, under Warren Buffett, made a $3 billion investment in Citigroup in 2022. This move positively impacted Citigroup’s stock and bolstered confidence in the bank. As of September 2023, Buffett remained among the top five shareholders of Citigroup.
Warren Buffett’s support has historically played a pivotal role in boosting investor confidence in financial institutions.
At Bank of America, his backing helped restore confidence as CEO Brian Moynihan led the reconstruction of the second-largest U.S. lender following the 2008 financial crisis.
Personal Conversations and Personnel Changes
Citigroup has continued its restructuring efforts, recently eliminating more leadership roles as part of the ongoing organizational changes. The bank aims to enhance efficiency and adapt to evolving market dynamics.
In separate conversations, managers in markets, risk, and investment banking at Citigroup were informed of their departures as part of the restructuring.
Though challenging, the changes are considered integral to Citigroup’s broader strategy for future growth and resilience in the financial sector.
