Citigroup reported an $8.29 billion loss in the fourth quarter and is bracing for another dismal year.
After receiving $45 billion from U.S. taxpayers just two months ago, Citibank’s much-maligned parent Citigroup will be no longer, as the financial giant announced in Solomon-style manner Friday that it will split itself into two, dividing the company’s traditional banking business— becoming Citicorp—and its riskier investment department—Citi Holdings.
Struggling US banking giant Citigroup has announced plans to split the firm in two, as it reported a quarterly loss of $8.29bn (£5.6bn).
It said it would realign into two new firms, Citicorp and Citi Holdings.
Citicorp will handle the company’s traditional banking work, while Citi Holdings will take on the firm’s riskiest investment assets.
Last autumn, Citigroup had to be rescued by the US government in a bail-out deal totalling $45bn.
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