GM and Citigroup no longer on the Dow

This would have been impossible to imagine a few years ago but the management failures have caught up with both. A former division of Citi is moving in taking their spot but GM is being replaced by tech hardware maker Cisco. Reuters:

In a widely anticipated move, Dow Jones & Co said technology bellwether Cisco Systems Inc (CSCO.O) will replace GM, which filed for bankruptcy on Monday morning. Travelers Co (TRV.N), a large home, auto and commercial insurer, will take the place of Citigroup due to the bank’s restructuring and the government’s “large and ongoing stake.”

The changes marked the latest fallout on the financial landscape from the collapse of the U.S. housing market, when home prices plunged after years of running higher as credit markets froze. The turmoil helped drive Lehman Brothers into bankruptcy last September, shaking Wall Street to its core and prompting the U.S. government to create a $700 billion financial rescue fund. The U.S. Treasury plans to use about $30 billion of that bailout money to buy a stake in GM.

An American in Paris, France. BA in History & Political Science from Ohio State. Provided consulting services to US software startups, launching new business overseas that have both IPO’d and sold to well-known global software companies. Currently launching a new cloud-based startup. Full bio here.

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