uscitizen
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Citigroup to shed nearly $500 billion in assets
Saturday May 10, 7:06 AM EDT
NEW YORK (AP) — Citigroup Inc.'s new chief executive, Vikram Pandit, plans to stick with a global banking model after months of intense review — but only after shrinking the company by about one-fifth first.
The three-year game plan, revealed Friday, includes getting rid of more businesses, mortgages, real-estate operations and jobs.
The bank aims to shed between $400 billion and $500 billion of its $2.2 trillion in assets and grow revenue by 9 percent over the next few years as it tries to rebound from massive losses tied to deterioration in the credit markets.
The $500 billion in so-called "legacy assets" the bank intends to sell off or allow to mature include yet-to-be-named noncore businesses, as well as assets in Citigroup's securities and consumer banking segments. That includes mortgages and other real estate-related holdings.
Meanwhile, the anticipated rise in revenue will derive largely from cutting costs — which Chief Financial Officer Gary Crittenden said will mean more job reductions. Citi has so far lowered its headcount by 13,200 since last summer.
http://finance.myway.com/jsp/nw/nwdt_rt.jsp?section=news&feed=ap&src=601&news_id=ap-d90io50g0&date=20080510
Saturday May 10, 7:06 AM EDT
NEW YORK (AP) — Citigroup Inc.'s new chief executive, Vikram Pandit, plans to stick with a global banking model after months of intense review — but only after shrinking the company by about one-fifth first.
The three-year game plan, revealed Friday, includes getting rid of more businesses, mortgages, real-estate operations and jobs.
The bank aims to shed between $400 billion and $500 billion of its $2.2 trillion in assets and grow revenue by 9 percent over the next few years as it tries to rebound from massive losses tied to deterioration in the credit markets.
The $500 billion in so-called "legacy assets" the bank intends to sell off or allow to mature include yet-to-be-named noncore businesses, as well as assets in Citigroup's securities and consumer banking segments. That includes mortgages and other real estate-related holdings.
Meanwhile, the anticipated rise in revenue will derive largely from cutting costs — which Chief Financial Officer Gary Crittenden said will mean more job reductions. Citi has so far lowered its headcount by 13,200 since last summer.
http://finance.myway.com/jsp/nw/nwdt_rt.jsp?section=news&feed=ap&src=601&news_id=ap-d90io50g0&date=20080510