Citi to sell assets. To whom?
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)