Citi insiders complain of death by PowerPoint amidst data issues
Citi has some expensive problems with its data. They might have something to do with its alleged unwillingness (strenuously denied by Citi) to confront the extent of the problem internally. They may also have something to do with an over-reliance on PowerPoint presentations and internal meetings with minimal outcomes.
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The Financial Times reported yesterday that Citi's latest $136m regulatory fine was the direct result of data issues relating to its commercial loan files which, it claimed, "regularly contained errors, such as incorrect maturity dates, collateral information or even the size of loans." The FT said consulting firm McKinsey & Co. had attempted to implement "action plans" to address the broader data issues, but that there was "was widespread internal dissatisfaction," with McKinsey's work. It also turns out that Kathleen Martin isn't the only senior data professional to leave Citi recently: the FT says Mike Whitaker, the head of technology and operations also left in May, just one month after rallying the Citi troops at Florida town hall where he walked on stage to music from Gladiator.
Citi has long denied all allegations of an internal cover-up on the extent of its data problem, but the FT's article hints at a more insidious issue: pointless meetings.
“At Citi, there are a lot of committees and working groups that get set up so people can sit around and talk about the issues,” one former executive told the FT.
This is something that CEO Jane Fraser has attempted to address with her Bora Bora restructuring. It remains to be seen whether she has succeeded.
As Citi attempts to meet the regulator's demands, insiders say the bank needs to overcome a historic tendency to rely too heavily on performative PowerPointing. "Citi has a horrible culture where making failure look like success in a PowerPoint is key to success," says one former employee. "It happens everywhere, but at Citi it's worse and results in subpar returns."
Another recently ex-employee tells us Citi has always loved meetings, but that in recent years the situation has got out of hand. This is partly as a result of the bank's expanded population of 13,000 risk and compliance staff. "There are hours of meetings with little purpose," she says. "And the army of risk and control people love PowerPoint presentations."
It's also a reflection of the consultants that have been called in to try and resolve Citi's many issues. One insider says it's not just McKinsey but various teams from the Big Four. "These people are bright but not subject matter experts" he says. "So they roam around the trading floor chatting with people, find someone who knows what’s going on, grill them for facts then regurgitate it on a PowerPoint as their own work. It ticks a box for Citi and goodness knows what it costs?"
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