Citigroup Inc. will divest up to $500 billion of non-core assets over the next three years, CEO Vikram Pandit told shareholders and analysts today at a meeting in New York. These reductions will release capital that we could use in our other businesses, Mr. Pandit told the audience. The sale will be concentrated on consumer mortgage-related assets and structure debt investments but also will include auto and leveraged loans.
Citigroup has reported a first-quarter loss of $5.1 billion, stemming from $40 billion in write-downs since the subprime mortgage crisis started last summer.
The bank, which has raised $44 billion in new investments from foreign investors including sovereign wealth funds in the Middle East, also said today it will move Alberto Verme, one of its two co-heads of global investment banking, to Dubai.