Citigroup had become too complex for investors to understand, and so share values stagnated. Furthermore, over the period 2000 to 2005, many divisions within Citigroup were charged with illegal or unethical behavior. It seemed that Citigroup had simply become too large and complex for central management to prevent inappropriate decisions on the part of various groups scattered throughout the world. It appeared that Citigroup needed a new corporate culture to guide globally decentralized decision-making. Meanwhile, Citigroup undertook a substantial expansion in China. However, many other giant financial institutions were also expanding in China, intensifying competition. By 2006, analysts throughout the world were becoming increasingly concerned about the possibility of rapid inflation in China, and the government of China shared this concern.
