Independent UK: Citigroup launches ‘Don’t panic’ ad blitz as shares dive

[marmar]

Citigroup launches ‘Don’t panic’ ad blitz as shares dive

By Stephen Foley in New York
Sunday, 23 November 2008



Citigroup, the embattled financial giant, is taking out advertisements in major US newspapers today in an attempt to shore up customer confidence after a downward spiral in its share price raised doubts about its future.

The tactic comes as executives and US government officials huddled in meetings through the weekend to decide whether more radical steps were needed to restore order.

With $2 trillion in assets and 200 million customer accounts in more than 100 countries, Citigroup is one of the world’s most powerful financial institutions. Yet its shares lost 60 per cent of their value in five days as investors questioned whether it can absorb billions more in losses on loans and commercial mortgage investments.

Although governments typically insure depositors’ money, and although Citigroup has access to potentially unlimited funding from the US Federal Reserve or the government’s Wall Street bail-out fund, executives still fear that the bad headlines could cause panic.

The advertising blitz is designed to reassure. The company is running full-page ads that acknowledge “our financial markets have been tested in unprecedented ways”, but argue that the company’s strength is rooted in a broad range of businesses and the expertise of its staff. It says customers can look to Citigroup for “providing stability” and “securing the future”, and concludes: “Now, more than ever, you can feel confident that Citi never sleeps.” .......(more)

The complete piece is at: http://www.independent.co.uk/news/business/news/citigroup-launches-lsquodonrsquot-panicrsquo-ad-blitz-as-shares-dive-1030812.html

[nc4bo]

1. MegaCorp says not to panic??!!! Oh shitz...........

Human behavior is usually very predictable especially when being told NOT to panic.

Someone should have reminded Citigroup of this little fact.