Citigroup, the biggest bank in the US, has said it plans to sell almost 260 billion euros worth of assets. That is nearly 20% of its total assets
Citi’s newly installed chief executive, Vikram Pandit, said the sales, to be carried out of the next two to three years, are intended to make the subprime battered bank more efficient and profitable.
Pandit said he will get the company fit, restructure and then maximise it, but he cautioned that will take time.
The bank was suffered 30 billion euros worth of write downs and credit losses in the subprime mortgage meltdown and ensuing turmoil. It has had to sell 26 billion euros worth of new stock and the share price has fallen 55% in the last year.
The US housing crisis has revealed problems at the bank which some investors believe is too big to govern. They would like to see it slash costs, get rid of poorly performing businesses and even be split up.