In September 2007, with a mortgage crisis clearly on the horizon, Citigroup's CEO Charles Prince III gathered with his top executives to understand whether the bank — then the nation's largest — faced any risk. The consensus was no.
How wrong they were. In a year's time, Lehman Brothers crashed, triggering a global financial collapse. Citigroup lost 90% of its value and 75,000 employees, and ultimately, needed US taxpayers to bail it out.
Since that low point, the bank has worked hard to rehabilitate its image, but not its ability to understand and address key global financial risks.