Citi break up


Citibank is alive

Citibank is alive

Citigroup Inc unveiled a plan to break into two businesses as a way to shed troubled assets, and reported an $8.29 billion fourth-quarter loss, its fifth straight quarterly loss.

The company also said on Friday that it anticipated more departures from its board, which is losing Robert Rubin as a director later this year. Nevertheless, Citigroup shares rose 14.9 percent to $4.40 in premarket trading, in part because of hope about the banks plans to restructure and separate its good assets from its bad ones.

“Its one of the first steps toward some positive news and the end of this nightmare,” said Michael Holland, founder of Holland & Co in New York, which oversees more than $4 billion of assets.

Citigroup posted $28.3 billion of writedowns and credit losses, bringing its total credit losses over 15 months to more than $92 billion.

The banks fourth-quarter loss equaled $8.29 billion, or $1.72 per share, compared with a year-earlier loss of $9.8 billion, or $1.99 a share.

The results included after-tax gains of $3.9 billion from the sale of the companys German retail banking operations.

via Citi loses $8.3 billion, separates into two units | U.S. | Reuters .

Also see Good Bank, Bad Bank

However Citi has been able to create $7 billion in Capital and $2.7 billion in Cash from the Sale of 50% in Morgan Stanley Smith Barney. Morgan stanley can buy additional 15%,15%, 20% in years 2012, 2013 and 2014.

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About zyakaira

Investment Banker, 40s, Bangalore This Biopic and this web recreates how one point of view, one person can impact a tremendous economic engine that the world thrives and mis-thrives on. This one has the knowledge and the civil sense , the art of conversation and some good writing to mentor others as powerful and help global managers develop and fine tune their approach on US markets, China, India and the world. Read on here, and let me know what you need. It can be a race for TRPs, a race for new markets and a race to do what is right. I have the pulse of the crisis, the recovery and the market direction and can help you build and refine your strategy as i have helped thousands of managers and multiple global corporations. Of course, it’s more fun if you talk to me. I am in favor of leading this moving of the economic crisis and will partner with you in a soft and subtle way, just the way we both ride to the top. But you can write with us, opine and just reply with aplomb and shine on Twitter , 4 square , Facebook and any other social “choupal” of choice via zyaadakairaada Profile & Portfolio - SocialPicks Different flavours at: http://benchilibowl.wordpress.com http://zyaada.mp

Posted on January 16, 2009, in Bank Stocks, Financial Markets, Meltdown, US and tagged , , , , . Bookmark the permalink. Leave a comment.

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