Citi Showing Signs Of Recovery (C)
March 11, 2010 7:51 PM
Citigroup (NYSE: C) CEO Vikram Pandit has divided the bank’s entire businesses into two divisions.
The first division, Citicorp Group, provides transaction services, securities and banking and regional consumer banking, and has a big exposure to overseas markets. The second division, Citi Holdings, includes businesses which are planned to be sold or wound down. This division includes Local Consumer Lending or LCL. LCL deals in US consumer businesses such as student loans, auto loans, and credit cards.
Citi Holdings recorded a $8.3 billion loss in 2009. However, Citi Holdings has been showing some signs of recovery. “With Citi Holdings, we have the funding, liquidity and capital to unwind these businesses. It's time to shift focus to the future," Pandit said.
