Citi Bank has been failing to improve in selling some of their credit card portfolios over the years. Now, the bank has looked upon dumping their credit card portfolios. The bank`s large and high risk assets have not been bought since companies see that the country`s current bad economy seems to not have an end. The current news bits that have been spreading around the country is that Citi Bank is "dumping" their credit card portfolios at unreasonably high prices, that is why no financial institute wants to buy them. The bank`s spokeswoman, Shannon Bell, had only little comment on the current news about the bank, although she did note that the bank has recently focused its attention in cleaning up their credit card portfolios.
Citi Bank was once known as the country`s largest and leading credit card issuer. Now it has backed up two slots landing on as only the third leading credit card issuer of the nation, behind Chase Bank and the Bank of America. There are reports saying that the bank`s net card losses in the first quarter of the new year increased to $1.9 billion. This brings the bank`s current Chief Executive Officer, Vikram Pandit, to the least liked situation. With the Federal Reserve`s new credit cards rules and laws that would regulate credit cards, Pandit is hoped to find new and creative ways of removing the bank`s financial baggage or else its stockholders might start packing, as what most experts say. This move means that the bank needs to find customers who are strong in the card market of the country.
The bank`s credit cards portfolio future has been held back tightly due to the bank`s refusal of lessening its requirements, and not to mention its price. But, still, the bank has other good performing credit card portfolios that are popular and large paying enough to continue their hold on their baggage.
Citi Bank`s portfolios are filled with branded cards which have not performed successfully in the market. Sears, Macy`s and Home Depot are the brands included in the bank`s portfolio. Home Depot cards, although many still use and avail it, have had a significant number of customers who closed out their credit card accounts from further use. Sears and Macy`s however wait for what will happen to their credit card business.
Customers could still, however, find the best possible deals in the bank and others could still continue availing for the bank`s benefits.