While some analysts of Wall St. had started to question NY-based Citigroup Inc., the third-largest credit card issuer in the United States behind American Express and Visa Inc., about its plan to weather its big bet on credit cards if the economy entered into a recession, the American multinational investment bank was saying that it would be underwriting the responsibilities.
Meanwhile on Friday, the 13th of September 2019, a Citigroup spokeswoman, Elizabeth Fogarty had been quoted saying that the lender had been proffering the loans sensibly and responsibly through its almost zero-cost balance transfer and other offers despite a US coffer which could soon start off a hawkish campaign to lassoing down its interest rate much quicker than anticipated, which in effect would make Citigroup Inc.’s capitals more vulnerable, as expressing an overwhelming fret on Citigroup Inc.’s hawkish move on credit card business ahead of a series of interest rate cut by the Federal Reserve, Well Fargo banking analyst, Mike Mayo said on Friday (September 13th), “The risk is Citigroup is over-indexed to credit cards.
We are worrying every day about what could go wrong. ” Nonetheless, as a response, adding that the lender had been leveraging on a balanced growth strategy which would likely to be insulated by latest Fed moves. Citigroup spokeswoman, Elizabeth Fogarty said, “We diligently monitor market and environmental conditions on a continuous basis and will make adjustments as needed. ”