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The shuffle Citi needs

Citi CEO Vikram Pandit keeps moving around the deck chairs, but the one chair he still won’t move is his own.

The latest management shuffle at Citi seems more designed to appease the federal government–the bank’s largest shareholder–than anything else. Moving people in and out of jobs gives the appearance that Pandit is really shaking Citi up. (Here’s a report from Reuters on the latest management shuffling).

But the reality is things can’t really change at Citi until Pandit leaves the stage. Of course, the problems at Citi long predate Pandit’s arrival. But it’s hard to see how Citi will revive itself without an entirely fresh management team and board.

Frankly, what Pandit should be more focused on right now is cleansing the bank’s balance sheet of toxic assets. Citi should be one of the biggest sellers of toxic assets to the dramatically scaled back PPIP.

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