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Citi break up – our questions!

Citi is alive Citigroup Inc, (C.N) struggling to contain losses, is separating assets into a “good bank” and a “bad bank,” a person close to the matter said.

The bad bank assets would stay on Citigroup’s balance sheet, but could be separately managed. They would include illiquid assets, including collateralized debt obligations. The good bank would include Citi’s main businesses, such as corporate banking, investment banking, securities underwriting, and trading of liquid securities for customers.

Citigroup would consider selling some businesses, such as Primerica Financial Services, the person said. Citi declined to comment.

via Citigroup to separate into good and bad bank: source | Reuters .

Citi’s deal with Morgan Stanley (check http://zyakaira.wordpress.com) confirms that when Vikram Pandit rode in the deal was already done in terms of the closing of Citi’s golden days as a group. That brokerage and investment businesses will continue to be a part of the worldwide retail business is a small consolation as also there is a question on its growth in emerging markets which are today the mainstay of any global corporation’s profit making strategies.

2 comments on “Citi break up – our questions!

  1. Pingback: Citi break up « An investor’s Blog

  2. Pingback: Citi break up « Obamanomics

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This entry was posted on January 14, 2009 by in Financial Markets, Global, Meltdown, Uncategorized and tagged , , , , .

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