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Citigroup eyes £200bn sell-offs
Evening Standard 9 May 2008
Citigroup is said to be considering the sale of up to $400 billion (£202.3 billion) of non-core assets.
They are understood to include whole businesses and trading positions on its $2 billion balance sheet.
The proposal could be outlined today, but disposals could take years. The move would be the latest in efforts by new chief executive Vikram Pandit to slash costs and assets hit by the credit crunch. He has promised to cut annual expenses by about a fifth.
Pandit took over in December from Charles Prince, who fell on his sword after presiding over huge losses. Citi has been forced to raise more than $40 billion of new capital, and has cut its dividend by 41%.
But Pandit is expected to tell ameeting in New York today that he is against a break-up of the group put together by former chief executive Sandy Weill.
Pandit has already sold the bank's stake in CitiStreet, its joint venture with State Street, the commercial leasing business CitiCapital and the Diners Club business.
