July 9 Biz Minute

Citigroup announced today its biggest management shake-up since the financial crisis began, replacing its chief financial officer and installing a new banking chief as it prepares to give the government a 34 percent equity stake. The revolving door that Citigroup's upper management has become spun again amid intense pressure to improve performance, add consumer banking experience and shed toxic or unwanted assets.
Legendary investor Warren Buffett said in an interview aired today that unemployment could hit 11 percent and a second stimulus package might be needed as the economy struggles to recover from recession. Buffet told ABC's "Good Morning America." "We're not in a freefall, but we're not in a recovery either." Sprint Nextel said today that Ericsson would manage its network as part of a seven-year deal worth $5 billion under which 6,000 Sprint workers would move to Ericsson. Sprint said that it would keep full control of its network after the deal, adding "This is about improving our customer experience. The Securities and Exchange Commission is going to recommend that the IOUs being issued by California be regulated by the Municipal Securities Rulemaking Board as a form of municipal debt. Some of the nation's largest banks say that, starting Friday, they will no longer accept the IOUs. The banks want to pressure the state to end its budget impasse, but their action could leave many businesses and families with fewer options for getting their money. After yet another weak month, retailers are preparing to fight for their share of crucial back-to-school shopping. But they may have to keep discounting to keep consumers coming in, given escalating job uncertainty. Particularly worrisome in today's same-store sales reports: Mall-based teen stalwarts like Abercrombie & Fitch were among those hit hardest as families looked for bargains.

Category:

News & Politics

Tags:

• Citigroup
• Warren Buffet
• Good Morning America
• Sprint Nextel
• Ericsson
• SEC
• California
• Municipal Securities
• Retailers
• Abercrombie & Fitch
• Back to School