Citigroup CFO Gerspach Sees Banks’ Low ROE as Deterrent

Citigroup Inc. Chief Financial Officer John Gerspach said investors may abandon shares of U.S. banks if the industry’s return on equity doesn’t improve.

“If you take a look at the return on equity that most financial institutions are producing these days, there’s reason to think that the profitability is really not enough to sustain continued investor involvement,” Gerspach, 59, said today on a call with fixed-income analysts.