Days after announcing the spin-off of its Smith Barney brokerage unit, Citigroup has splintered further, dividing into two separate businesses: Citicorp and Citi Holdings. After announcing an $8.2 billion fourth-quarter loss, CEO Vikram Pandit said the company would split for management purposes.
Citicorp will reportedly be the home of the company's global bank, while Citi Holdings will be reserved for "non-core" assets, such as those guaranteed by the U.S. government.
"We are setting out a clear road map to restore profitability and enable us to focus on maximizing the value of Citi," Pandit said in a press statement.
SOURCE: Citigroup