Latest news with #Citigroup
Yahoo
an hour ago
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Stanley Fischer, who spread the macroeconomic gospel, dies at 81
(Bloomberg) — Stanley Fischer, a professor and practitioner of macroeconomics who helped guide central banks in two countries, Israel and the US, and mentored a younger generation of economic decision-makers, has died. He was 81. Billionaire Steve Cohen Wants NY to Expand Taxpayer-Backed Ferry Now With Colorful Blocks, Tirana's Pyramid Represents a Changing Albania Where the Wild Children's Museums Are The Economic Benefits of Paying Workers to Move NYC Congestion Toll Brings In $216 Million in First Four Months He died on Saturday, the Bank of Israel said in a statement, expressing condolences. Fischer, known as Stan, served as vice chairman of the US Federal Reserve from 2014 to 2017 following eight years as governor of the Bank of Israel, adding to a resume that included time at the Massachusetts Institute of Technology, spells at the International Monetary Fund and World Bank, and a stint as vice chairman of New York-based Citigroup Inc. The roster of MIT students he taught and advised included Ben S. Bernanke, who would go on to become Fed chair and called Fischer his mentor; Mario Draghi, a future European Central Bank president and prime minister of Italy; Lawrence Summers, who would serve as US Treasury secretary under Bill Clinton; Greg Mankiw, who would lead President George W. Bush's Council of Economic Advisers; Kazuo Ueda, named Bank of Japan governor in 2023; and two IMF chief economists, Olivier Blanchard and Maurice Obstfeld. Countless other college undergraduates were introduced to the dismal science by Macroeconomics, the textbook Fischer wrote in 1978 with his MIT colleague, Rudi Dornbusch. The 13th edition of the book was published in 2018. 'It is hard to think of any other macroeconomist alive who has had as much direct and indirect influence, through his own research, his students, and his policy decisions, on macroeconomic policy around the world,' Blanchard wrote of Fischer in 2023. Fischer and Blanchard co-authored Lectures on Macroeconomics, published in 1989. Dispatched on several occasions to extinguish economic emergencies around the world, Fischer drew academic lessons from his first-hand experience with countries in crisis. The pattern began in 1983, when George Shultz, then the US secretary of state, invited Fischer to serve on a joint US-Israeli team of experts helping Israel reverse a prolonged period of weak growth, triple-digit inflation and falling foreign exchange reserves. Their work resulted, in 1985, in an economic stabilization program combining a large reduction in government subsidies with the fixing of the exchange rate, a tightening of monetary policy, and wage and price controls — followed, crucially, by the US supplying a $1.5 billion two-year aid package. That was a prelude to Fischer's tenure as the No. 2 official at the IMF, the lender of last resort to countries in economic peril. Starting in 1994, Fischer traveled the globe to help resolve interrelated financial crises in Mexico, Russia, Brazil, Thailand, Indonesia and South Korea. His role meant he often overshadowed his boss, IMF Managing Director Michel Camdessus. But years later, Fischer credited Camdessus with keeping a sense of calm following the collapse of the Mexican peso in 1994, the first IMF crisis Fischer faced. 'I thought Western civilization as we knew it was coming to an end,' but Camdessus 'had seen this particular play before,' Fischer recalled. The IMF provided about $250 billion in emergency loans during Fischer's seven years as first deputy managing director, ending in 2001. To accept Israel's 2005 offer to head its central bank, Fischer, an American citizen since 1976, added Israeli citizenship. He conducted business in Hebrew, with an accent that indicated his upbringing in southern Africa. Under his leadership, Israel's central bank was the first to cut rates in 2008 at the start of the global economic crisis, and the first to raise rates the following year in response to signs of financial recovery. In 2011, responding to a global downturn, the bank embarked on a series of rate cuts that pushed the benchmark from 3.25% to a record low 0.1% in 2015. Major changes enacted by Fischer during his eight-year tenure included shifting responsibility for the monthly interest-rate decision from the governor alone to a six-member Monetary Committee, including three outside academics. 'It is testament to Stan's skillful handling of Israel's economy that it is one of the very few advanced economies whose output increased every year through the crisis period,' former Bank of England Governor Mervyn King said in 2013. President Barack Obama appointed Fischer as vice chairman of the Fed Board of Governors under Janet Yellen. Fischer announced his retirement in 2017, a year before his four-year term was to end. He joined BlackRock Inc. as an adviser in 2019. Fischer was born on Oct. 15, 1943, in Mazabuka, a town in Zambia, the nation then known as Northern Rhodesia. His family was part of a close-knit community of Jews who had emigrated to southern Africa. His Latvian-born father, Philip, ran a general store. His mother, Ann, had been born in Cape Town, the daughter of Lithuanian immigrants, according to a Financial Times profile. At 13, the family moved to Zimbabwe, then called Southern Rhodesia, where Stanley became active in the Habonim, a Zionist youth group, along with Rhoda Keet, his future wife. In the early 1960s, he spent six months on a kibbutz on Israel's Mediterranean coastal plain, where he combined learning Hebrew with picking and planting bananas. He was introduced to economics through a course in his senior year in high school and moved to the UK to study at the London School of Economics, earning a bachelor's degree in 1965 and a master's in 1966. He chose MIT for his doctorate work so that he could study under future Nobel laureate economists Paul Samuelson and Robert Solow. He said he may have been drawn to macroeconomics 'because I was interested in big questions.' 'I had this image of the world as we knew it having nearly collapsed in the 1930s, and that these guys' — the macroeconomists — 'had saved it,' he said in a 2005 interview with Blanchard. He earned his Ph.D. in economics in 1969, worked as an assistant professor at the University of Chicago, then returned to MIT in 1973 as an associate professor. The first course he taught was monetary economics, alongside Samuelson. He became a full professor in 1977. Bernanke, who earned his Ph.D. from MIT in 1979, traced his interest in monetary policy to a conversation he had with Fischer — 'then a rising academic star' — in the late 1970s. He said Fischer handed him a copy of A Monetary History of the United States, 1867-1960 (1963), by Milton Friedman and Anna J. Schwartz, with the encouragement, 'Read this. It may bore you to death. But if it excites you, you might consider monetary economics.' Bernanke credited Fischer with popularizing the principle that while the Fed pursues goals set by the president and Congress, it has policy independence — freedom to use its tools as it sees fit to achieve those goals. As chief economist of World Bank from 1988 to 1990, Fischer visited China and India and became, he later said, 'gripped by the problem of development.' After Fischer left the IMF in 2001, he joined Citigroup Inc. as a vice chairman and drew on his experience to lead the bank's country risk committee. Fischer declared himself a candidate for the top role at the IMF in 2011, following the resignation of Dominique Strauss-Kahn. At 67, however, he was over the IMF's age limit of 65 for managing directors, meaning he would have needed a change in rules. The job went to Christine Lagarde. In 2013, Fischer was thought to be a possible candidate to succeed Bernanke at the helm of the Fed. Obama instead chose Yellen, with Fischer as her deputy. 'In a just world, Stan would have served at some point as Fed chairman or managing director of the IMF,' Summers wrote in 2017. 'Fate is fickle and it did not happen. But Stan through his teaching, writing, advising and leading has had as much influence on global money as anyone in the last generation. Hundreds of millions of people have lived better because of his efforts.' 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Yahoo
2 hours ago
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Stanley Fischer, former Fed vice chair and Bank of Israel chief, dies at 81
By Steven Scheer JERUSALEM (Reuters) - Stanley Fischer, who helped shape modern economic theory during a career that included heading the Bank of Israel and serving as vice chair of the U.S. Federal Reserve, has died at the age of 81. The Bank of Israel said he died on Saturday night but did not give a cause of death. Fischer was born in Zambia and had dual U.S.-Israeli citizenship. As an academic at the Massachusetts Institute of Technology, Fischer trained many of the people who went on to be top central bankers, including former Federal Reserve Chairman Ben Bernanke as well as Mario Draghi, the former European Central Bank president. Fischer served as chief economist at the World Bank, and first deputy managing director at the International Monetary Fund during the Asian financial crisis and was then vice chairman at Citigroup from 2002 to 2005. During an eight-year stint as Israel's central bank chief from 2005-2013, Fischer helped the country weather the 2008 global financial crisis with minimal economic damage, elevating Israel's economy on the global stage, while creating a monetary policy committee to decide on interest rates like in other advanced economies. He was vice chair of the Federal Reserve from 2014 to 2017 and served as a director at Bank Hapoalim in 2020 and 2021. Current Bank of Israel Governor Amir Yaron praised Fischer's contribution to the Bank of Israel and to advancing Israel's economy as "truly significant". The soft-spoken Fischer - who played a role in Israel's economic stabilisation plan in 1985 during a period of hyperinflation - was chosen by then Finance Minister Benjamin Netanyahu and Prime Minister Ariel Sharon as central bank chief. Netanyahu, now prime minister, called Fischer a "great Zionist" for leaving the United States and moving to Israel to take on the top job at Israel's central bank. "He was an outstanding economist. In the framework of his role as governor, he greatly contributed to the Israeli economy, especially to the return of stability during the global economic crisis," Netanyahu said, adding that Stanley - as he was known in Israel - proudly represented Israel and its economy worldwide. Israeli President Isaac Herzog also paid tribute. "He played a huge role in strengthening Israel's economy, its remarkable resilience, and its strong reputation around the world," Herzog said. "He was a world-class professional, a man of integrity, with a heart of gold. A true lover of peace."
Bloomberg
2 days ago
- Business
- Bloomberg
NY Proposes 9.3% Con Edison Return as Higher Power Bills Loom
The staff of New York's utility regulator recommended Consolidated Edison Inc. collect a 9.3% return on its equity, lower than the amount sought by the power company. The utility had requested a return on equity of 10.1%. Analysts at Citigroup Inc. had predicted that staff would recommend a 9.2% return.
Yahoo
2 days ago
- Business
- Yahoo
Stablecoins Boost Treasury Bill Demand, Reflect Dollar Dominance, Citi Says
Stablecoins are playing an increasingly important role in both crypto markets and traditional finance, according to a Friday report by Wall Street giant Citigroup. As stablecoin usage grows, so does their demand for short-term U.S. Treasuries, although substitution from money market funds may limit the net effect, the report said. Legislation under consideration in Congress could further entrench this trend by requiring reserves to be held in short-dated government debt, the bank noted. Citi said the U.S. dollar's dominance in stablecoin issuance reflects its status as the global reserve currency, rather than driving it. Dollar-backed stablecoins like USDT remain dominant, fueled by their central role in crypto trading and blockchain-based payments, the bank said. Meanwhile, new players like PayPal (PYPL) and Visa (V) are also experimenting with stablecoin use cases, Citi said. The potential market is significant, $1.6–$3.7 trillion by 2030, according to Citi, but regulatory constraints such as yield restrictions may cap growth. Still, stablecoin issuance trends could offer insights into the evolving global monetary order, the report in to access your portfolio
Yahoo
2 days ago
- Business
- Yahoo
Did Warren Buffett Make a Mistake Selling This High-Yield Dividend Stock? Wall Street Thinks So.
Berkshire Hathaway exited its stake in Citigroup in Q1 after first buying the stock in early 2022. Wall Street analysts are overwhelmingly bullish about Citigroup. Both Buffett and Wall Street could be right about this bank stock. 10 stocks we like better than Citigroup › Warren Buffett became a legend for his investing prowess. These days, though, the 94-year-old billionaire is disinvesting more than he's investing. Buffett's Berkshire Hathaway has been a net seller of stocks for 10 consecutive quarters. In the first quarter of 2025, Buffett & team reduced Berkshire Hathaway's holdings in six stocks. They also completely exited the conglomerate's positions in two stocks. Citigroup (NYSE: C) was one of them. But did Buffett make a mistake selling this high-yield dividend stock? Wall Street thinks so. Buffett first initiated a position in Citigroup in the first quarter of 2022, buying around 55.2 million shares. Although bank stocks seemed to have lost some of their luster in the eyes of the Oracle of Omaha, Citigroup probably looked like a good turnaround play to him. Shares of the financial services giant had fallen sharply in early 2022, and Citigroup was the only large U.S. bank that traded below its book value. CEO Jane Fraser faced a steep challenge to right the ship. But Buffett likes solid underlying businesses available at attractive valuations. He scooped up shares of Citigroup and waited for the comeback. At first, the decision to buy the struggling bank stock might have seemed unwise, as Citigroup's shares continued to decline throughout much of 2022 and 2023. Buffett didn't flinch, though. Berkshire even bought another 89,000 or so shares of Citigroup in the first quarter of 2023. Buffett's patience was rewarded beginning in late 2023. Citigroup, along with the overall stock market, gained momentum that lasted throughout 2024 and into early 2025. Buffett sold most of Berkshire's stake in the big bank in the fourth quarter of 2024 and fully exited the position in the following quarter. Why did he bail out on Citigroup? We don't know for sure. It could be that Buffett thought Citigroup's turnaround was complete. Whatever his reasoning, Buffett almost certainly locked in a tidy profit for Berkshire by selling the stock when he did. However, Wall Street seems to think Buffett & team made a mistake by selling all of Berkshire Hathaway's Citigroup shares. Of the 22 analysts surveyed by LSEG in May, 16 rate the bank stock as a buy or strong buy. The others recommended holding Citigroup. This overwhelmingly bullish take on Citigroup isn't new, either. Throughout the first quarter of 2025, at least 75% of analysts surveyed by LSEG viewed the stock as a buy or a strong buy with no analysts recommending selling. Wall Street's consensus 12-month price target for Citigroup reflects an upside potential of nearly 12%. The most optimistic analyst surveyed by LSEG thinks the stock can soar almost 46% over the next 12 months. Even the most pessimist analyst only sees a downside of around 7%. Was Buffett right to sell Citigroup, or are the majority of Wall Street analysts right about buying the stock? My answer is... both are probably right. Let's first look at Wall Street's perspective. Analysts see a solid financial services company with rising revenue and profits. They see a stock that trades at only 10.3 times forward earnings estimates. They see a share price that's still more than 25% below book value. And analysts recognize how attractive Citigroup's forward dividend yield of nearly 3% is. When we take these factors into account, it's easy to understand why so many Wall Street analysts recommend buying Citigroup stock. The optimistic consensus 12-month price target also makes sense. However, let's try to see things from Buffett's eyes. The investing icon isn't as big a fan of bank stocks as he has been in the past. He's likely concerned about the impact of tariffs on the U.S. economy. As previously mentioned, Buffett probably made a nice profit for Berkshire on its Citigroup investment. It's not hard to appreciate why he and his team might have chosen to sell the stock when they did. The bottom line is that it can be the right move for one investor to buy a stock while simultaneously being the right move for another investor to sell the same stock. Should you buy Citigroup stock? Or should you sell it? It depends on your personal circumstances, investing goals, and risk tolerance. Before you buy stock in Citigroup, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Citigroup wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,761!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $826,263!* Now, it's worth noting Stock Advisor's total average return is 978% — a market-crushing outperformance compared to 170% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Citigroup is an advertising partner of Motley Fool Money. Keith Speights has positions in Berkshire Hathaway. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool has a disclosure policy. Did Warren Buffett Make a Mistake Selling This High-Yield Dividend Stock? Wall Street Thinks So. was originally published by The Motley Fool Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
