Michael Klein, reported recently to be leaving Citigroup, of which Citibank is a part, is set to receive one of the largest payouts in the industry for a departing executive since the credit crunch started.
It is understood that Mr Klein will receive a settlement package from Citibank worth over USD42 million, made up of stocks and cash, with the proviso that he does not join a rival organisation before next October. The amount may cause consternation for the company since it sits uncomfortably with the position of banks and financial institutions saying they are struggling.
Citibank has seen many changes in recent months, with a new management structure now in place to try and steer the business back into profitability and financial stability following heavy losses on the back of the US sub-prime lending collapse.
Tesco Finance is understood to be aiming for a full retail bank status, offering the full range of bank products and services to customers.
The 50 percent stake RBS hold in Tesco Finance is to be bought back by Tesco itself, at a cost of GBP950 million. The initial plan appears to be an expansion of the current product range offered, with home insurance the first to receive the extra attention. After that Tesco Finance are expected to start offering basic bank accounts, placing themselves in direct competition with the high street banks.
The position of Tesco Finance, using its core Tesco brand to win customers through supermarket retailing, is a strong one. Most people in the UK use Tesco at some time, so the chance to promote a full bank operation via the stores and online could prove an excellent opportunity.
Although the general feeling may be that UK banks are currently taking a beating an investment expert has suggested Lloyds TSB makes a great investment opportunity right now.
The analyst felt that in the midst of what have been torrid trading conditions Lloyds TSB had announced very encouraging results. The bank has taken a cautious stance on mortgages, buy to let ones especially, and also any securities that are underwritten by assets.
This approach has kept Lloyds TSB away from the worst of the difficulties facing some other banks and left them looking strong as they move forwards. The bank appears to be a relatively safe haven with the cautious management approach but also offers the opportunity for substantial growth as Lloyds TSB uses its relative strength to maximise market opportunities.
