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Trillium Asset Management CEO Matt Patsky and Benedictine Sisters Treasurer Sister Rose Marie Stalbaumer on why they are supporting a breakup of the b...
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Has divine intervention forced Citigroup -- Take a look back October 16.
Vikram Pandit ousted as Citi CEO.
In November the Benedict teen sisters these -- -- shareholders step they on the stock filed a proposal asking Citigroup to break up.
So -- to unlock shareholder value and finally last week Citigroup announced 111000 job cuts and a bunch of branch closings.
No real massive break up but they are shedding some businesses joining me now on a Fox Business exclusive -- Is the treasurer.
Of the benedictine sisters sister Rose Marie it's -- about -- And of course -- -- -- trillium asset management CEO who has represented the benedictine sisters our sister Rosemary thank you so very much for joining us.
We have spoken to Matt back when you guys first put out that letter and I set out but I want to talk to the sisters about this because.
Highly unusual horrible press for Citi to have a group like you saying.
Guys unlock some shareholder value here but let me first explain.
Why you bought this more than ten years ago and you -- lost more than 90%.
Of the value what you originally bought -- -- is that correct.
That's correct -- so what brought -- at this point.
We decided to file this resolution with Citigroup because we believe the resolution.
Addresses not just that financial concerns it's not that 90% that is our primary concern.
But rather it's the justice issues.
For many years Citigroup has continued to take on more and more risk.
And when their bets -- it was the people at the bottom of the pure myth that -- hit the hardest.
And that's the people that were concerned about.
And that would actually be you when your sister's explain to people YE EU in the sisters.
Invest in stocks what does it forts for your retirement correct.
That's correct we have a retirement -- Because we need a we have more and more elderly sisters and so we need to depend on our retirement earnings.
-- From our.
Investments to help support those sisters.
And we also have a ministry -- which helps us support ministries.
Where are sisters did not receive compensation sister Rose Marie did Citigroup reach out to you did they respond specifically to your letter and the letter of the benedictine sisters.
And I was gonna say they know they have not reached out to -- personally.
But of course they have reached.
They have sent that the general letter that we all receive when we filed a resolution OK but that was that was -- -- shape to I was gonna say that does it just hey everybody -- Citi stock.
They they actually have they've reached out to us specifically it has trillium on behalf of this file what did they say and they asked for a meeting.
Which is very constructive and very positive -- is that meeting found that meeting is scheduled in the next couple weeks so it'll happen before year end.
So before a year and a sixty looked at -- -- I think that's it done and I'm like Al Washington but.
Before year end you've got a meeting now is -- -- to be where the sisters live.
The the meeting is scheduled -- I believe here in New York City although I don't done know that -- exact.
To do you know Dayton and details about the sister Rosemarie what you -- I will probably not come that I may be and -- by phone.
We haven't worked at any of the details at this point.
See -- -- thinking you should be there and and show up with a bunch of sisters and and really put the vice grips on -- you could get some real action where frankly.
Perhaps much larger shareholder institutional shareholders have not gotten action -- -- you guys do on about with with trillion about nine million dollars in the in stock and -- to that position but.
You could really happen affect -- because of course the obvious you were a group of nuns and that would be horrible PR for Citi.
I mean is that is that something that you would take into consideration.
Coming here and and showing them that you really do mean business.
-- That's a possibility we need to we need to work out the details for that.
But we're still working on the on the timing of all that -- but it is something certainly we.
We think there is is very positive that they are in ventured into dialogue that's a responsive to their violent okay.
Let's -- Citi some props here up -- CEO Michael Corbett and did make some moves now of course it hurts people to have layoffs but he made 111000 layoffs.
That's still turns out to only be about 4% of the company's workforce.
Do you think they need more layoffs or do you think they need to just chop off parts of the bigger businesses and which parts would that be -- Time what we're looking for -- for them to examine all of the aspects of their business and what they're appropriate actions aren't.
While we looked at potentially break into for businesses they could come to the conclusion that.
You know the optimal solution is to spin off the credit card business -- optimal solution is to spin off they investment banking business but.
We do think they need to make this business simpler.
So that is no longer not just too big to fail to too big to manage.
Sister Rose -- as we finish up aren't are -- sisters concerned about their retirement all of America is in this day and age but what specifically are they saying to you.
We are concerned about it but.
We we also have many generous donors who helped to support us and so.
I think we are probably in a better positioned -- a lot of individual families are.
Well you've got map helping us so that's good news of good to see that -- thank you very much for joining us.
Sister Rosemarie I don't -- of course absolutely please come back and again the big headline out of this is that there is a meeting Citigroup will be meeting.
With trillium and with the sisters of benedictine sisters so we'll keep you posted.
