Can Citigroup’s Directors Ensure Its Investors Receive Future Earnings from New Stock?

(NewsVisual, powered by IntellectSpace) -- In an effort to rebuild its capital resources and to restore its balance sheets, Citigroup Inc (NYSE:C) announced on Wednesday that it will make a $4.5 billion public offering of common stock.

Given the billions of dollars that the bank lost as a result of the subprime mortgage, it’s not surprising that the bank should be replenishing its coffers.

The bank also recently offered an issuance of $6 billion of preferred stock.

"We were pleased to increase the offering size to $4.5 billion in response to strong demand from a broad base of investors," said Citi CFO Gary Crittenden.

"This optimizes our capital structure and further strengthens our balance sheet," he added.

The Directors must now develop a strategic plan that will reverse the bank’s downward decline and that will make certain that the investors’ money results in future earnings for the bank.

NewsVisual created an IntellectSpace Knowledge Map that illustrates key past and current corporate connections of the members of Citi’s Board of Directors in order to assess their abilities in being able to guide the bank toward attaining a turnaround.

The Knowledge Map shows that the bank’s current Directors have a considerable degree of involvement with other corporations.

The most noteworthy board member is, perhaps, Citi Chairman Robert E Rubin.  Mr Rubin is a former United States Secretary of the Treasury during the Clinton Administration.  And he frequently appears on TV news programs as an expert on the financial markets.

It’s also worth mentioning that nine of the Citi Directors depicted in the Knowledge Map are the Chairman of other corporate boards.

For example, Citi Director Richard D Parsons is the Chairman of Time Warner Inc, Citi Director Alain Belda is the Chairman/CEO of Alcoa Inc, and Citi Director Anne Mulcahy is the Chairman/CEO of Xerox Corporation.

To view the remaining Citi Directors and to see the details of their business connections, click here for an interactive and fuller version of this IntellectSpace Knowledge Map.

(Note: the information contained and presented in Knowledge Maps is public information from the Securities and Exchange Commission of the United States of America).