Citigroup chief executive Vikram Pandit is preparing to break-up the banking conglomerate, separating its assets into essentially a separate "good" and "bad" bank in a startling reversal of the bank's decade-old strategy as a universal bank, according to The Telegraph .
Mr Pandit is understood to have decided that it is now necessary to place Citigroup's investment bank and its US consumer finance arm into what will essentially be a "bad bank," with the remainder's focus being the commercial and retail bank which formed the core of the old Citicorp. Although the bad bank, which will contain around $700bn (£482bn) of assets, will remain within the legal confines of Citigroup, its results will be reported separately and its access to capital will be limited. In addition, once core businesses such as its US insurance arm Primerica will be sold off. THE GO...
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