Financial Roundup: Citi Ponders Future, Deflation Worries, Commercial Paper Up, China Promises Non-Polluting Lending
Citi ponders future – Its stock price plunging, CitiGroup Inc. is considering selling itself or its parts. The venerable bank claims it has a strong capital and liquidity position but its stock has slipped 50 percent this week. [Source: The Wall Street Journal]
Deflation fears rise – Falling prices for fuel, food and consumer goods may trigger a deflation spiral. Economists worry that consumer won’t spend while waiting for better prices. [Source: The Washington Post]
Commercial paper up – It might not seem like it, but the commercial paper is up for the fourth straight week. For the week ended Wednesday, total outstanding paper rose from $11.1 billion to $1.6 trillion, suggesting credit is loosening up. [Source: Cfo.com]
Kansas bank hopes for wealth management growth – Country Club Bank of Prairie Village, Kan., is beefing up its investment advisory business. Assets could jump from $750 million to $5 billion over five years. [Source: American Banker]
Chinese banks prohibited from hurting environment – Pollution-sodden China has announced new banking regulations to limit ecological destruction. Lending, for example, will be curtailed to wayward iron and steel industries. [Source: Friends of the Earth]
Peter Galuszka is a Virginia-based journalist with more than three decades of experience, including 15 years at BusinessWeek, during which he was twice Moscow Bureau Chief and International News Editor in New York.
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