Citi Faces Struggle to Sell Assets - WSJ

Citi Faces Struggle to Sell Assets - WSJ - Dow Jones...

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See a sample reprint in PDF format. Order a reprint of this article now BUSINESS OCTOBER 4, 2011 By SUZANNE KAPNER Gone are a U.S. student-loan business, a U.K. online bank and a Japanese brokerage operation. Citigroup Inc. cast them off as it undertakes a housecleaning. The sales have paid off for the third-largest U.S. bank, shrinking a pool of unwanted assets that Citigroup executives no longer see as central to the company's main business of corporate and consumer banking, securities trading and cash management for large companies. The remaining unwanted pile, known as Citi Holdings, has $308 billion in assets, less than half its size when it was created in 2009. Now comes the hard part: getting rid of the rest. Citi Holdings offers a glimpse into the problems that banks still are grappling with three years after the financial crisis erupted. The assets in Citi Holdings have racked up $59 billion in losses since 2007. And as profits sag across the U.S. banking industry along with hopes for a strong economic rebound, Citi Holdings is likely to keep dragging the overall company lower for years to come. Citigroup shares are down by more than 50% this year, including a drop of 9.5% Monday in late trading, Particularly frustrating to executives and some investors is that the stock is almost as battered as Bank of
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This note was uploaded on 02/16/2012 for the course ACCY 510 taught by Professor Staff during the Fall '08 term at University of Illinois, Urbana Champaign.

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Citi Faces Struggle to Sell Assets - WSJ - Dow Jones...

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