US union urges Citi to break up, unlock value
A large US union has urged Citigroup Inc to break itself up, saying the bank had become “too big and unwieldy to properly oversee.”
McEntee said a place to start could be to break up Citigroup into two separate entities - one for securities and investment banking, and one for retail banking.
“Such a move would clarify Citi's financial position, would unlock value, and would allow greater focus in each core area, rather than the unwieldy jumble that has jeopardized our company's financial position and led to the loss of so much shareholder value,” McEntee wrote in the letter.
A Citi spokesman said that since becoming the company's chief executive in December, Vikram Pandit had “improved risk management, strengthened the balance sheet, shed legacy assets and non-core businesses, trimmed expenses, and attracted new talent.”
“Our strategy is to build on the universal bank model, which positions Citi to capitalize on global growth trends and deliver the full benefit of its unique capabilities to clients all over the world,” spokesman Michael Hanretta said in an e-mailed statement. (Reuters)
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.