DealZone

Citi to sell assets. To whom?

January 16, 2009

Citigroup As Citi announced plans of a radical dismantling, CEO Vikram Pandit said he “will continue to look at all assets dispassionately.”

For some time to come, that might really be all that he can do when it comes to his plan to sell off non-core assets.

Citi said it will realign into two businesses, Citicorp and Citi Holdings, as it posted its fifth straight quarterly loss. Citicorp will focus on universal banking, the other on brokerage and retail asset management, local consumer finance, and a pool of assets that require special management.

The bank is considering selling off Citi Holdings’ assets or letting them mature on their own.

Selling off assets is likely to prove tough. The question is how will Citi find buyers for businesses that even it doesn’t want? And even if it does find a buyer, what will it get for those assets?

The bank is looking at possibilities “but we’re not in a rush to sell businesses,” Pandit said.

(Photo: REUTERS/Mike Blake)

Comments
3 comments so far | RSS Comments RSS

Citi reminds me of that airplane sinking into the Hudson. If everyone gets out alive, it will be a miracle. Would anyone care to bid on a slightly used airplane? Non-existent assets, no problem, just pay a big fee to a BS credit-rating firm for a AAA rating on junk bond derivatives. When our Fed shows up to rescue the sinking ship, we taxpayers and various shareholders are robbed blind.

 

Happy New Year2009!

Posted by rxbkd | Report as abusive
 

Ya, your right bill. We’re the sinking ship, and yes as a shareholder and a tax payer no its not fare. However, which one will make you pay more money the feds rescuing us or obama putting a $ 820 billion dollar stimulus? Your children’s children are going to be paying those taxes off. I’ve been in the mortgage business for the past 7 years, including being at Citi presently. Do you suggest letting us die off so the goverment can be one step closer to nationalizing and turn the country into a socialist country? Everybody is pointing swords at the soldiers of the economy because thats all you see, try pointing your sword at the general. Open up your mind and look at whats really wrong and stop being so naive like 95% of the nation is. Go back to being a blue collar worker or whatever the hell you do, because you know nothing about the finance or mortgage industry. coime back when your grown up.

Posted by Citi Employee | Report as abusive
 

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