Selloff May be Next Under New Citigroup CEO

Pandit's 'front-to-back review' will look for options to boost capital
By Jim O'Neill,  Newser User
Posted Dec 12, 2007 11:54 AM CST
Former Citigroup Chairman and CEO Charles Prince speaks during an unveiling ceremony for the group's new logo at Citibank Korea head office in Seoul in this March 30, 2007 file photo. (AP Photo/Ahn Young-joon,...   (Associated Press)
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(Newser) – Major restructuring and sales of businesses appear to be on the table for embattled Citigroup, Bloomberg reports, with new CEO Vikram Pandit today promising a "front-to-back review" of operations at the financial giant battered by the subprime crisis. Citigroup stock has fallen 40% this year; one analyst called it "the worst-capitalized bank of its peers by a long shot."

"It cannot be ruled out that a major business unit or more may be monetized,'' one analyst says of the changes likely to accompany Pandit's ascension to the Citi helm. Chuck Prince was forced to step down after acknowledging that the bank would likely write down $11 billion in mortgage-related losses in the fourth quarter.