Citigroup Plans to Shed About $400 Billion of Assets |
| Bloomberg - May 9, 2008 |
Citigroup Inc. Chief Executive Officer Vikram Pandit said he plans to shed about $400 billion of ``legacy assets'' over the next three years as part of his plan to return the biggest U.S. bank to profitability.
``There will be more'' divestitures, Pandit, who succeeded Charles O. ``Chuck'' Prince in December, told shareholders at a meeting today at the bank's New York headquarters. The company, which lost $5.1 billion in the first quarter, has recorded more than $40 billion of credit losses and writedowns since the subprime mortgage market collapsed last year.
``They need to pare back the parts that are broken,'' said Barry James, who manages more than $2 billion as president of James Investment Research in Xenia, Ohio, including Citigroup bonds. ``He's a cautious guy. He's not going to do anything rash.''
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- Posted: 2008-05-09 08:48:25
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