CEO Watch Cleanup at Citigroup
The C.E.O. of Citigroup since December, Pandit has vowed to unload beleaguered assets from the biggest U.S. bank.
Within the next three years, Pandit announced, Citigroup will shed $400 billion in assets, all in an effort to streamline the bank and appeased worried shareholders.
Citigroup has already sold off or closed 45 U.S. branches, the New York Times reports, and has shuttered Citigroup’s headquarters building in Tokyo. But the bank, reeling from $45 billion in write downs and credit losses since 2007, has only begun to make deep cuts in its divisions and personnel.
More jobs cuts are on the way, Pandit announced, in addition to this year’s 13,200 cuts.
Pandit will also attempt to reduce costs by streamlining its cumbersome infrastructure. Citigroup will shed assets in its consumer banking and securities businesses, Pandit added. Pandit recently dumped the credit card Diners Club, CitiStreet and CitCapital. Now Citigroup has focused on ridding itself of the insurance and mutual fund company Primerica Financial, according to the Times.
Several influential – and anxious – shareholders have pressed Pandit to consider breaking up Citigroup. But Pandit made it clear during a recent conference call that he will not go down that path. Instead, Pandit expressed optimism in diverse areas, including credit cards and consumer banking.
Pandit hopes to increase revenues by 9 percent as Citigroup “gets it, restructures and maximizes” it business. The banks assets totaled $2.2 trillion at the end of the last quarter.
