Citigroup needs a trim
New Citigroup CEO Vikram Pandit should consider whether his “oft-troubled bank has become too big to succeed,” says The Wall Street Journal in an editorial. Citigroup “has shown a knack for finding the middle of whatever financial mess is in the news,” and its massive size “has not so much provided stability as a place for problems to hide.” Still, despite its $10 billion “black eye” yesterday, the bank has many “great businesses” in its fold that could be sold off to raise capital and stave off a “taxpayer rescue.” Pandit presumably wants to “run Citi, not dismantle it.” But “if it has become too big to fail but too large to succeed, a breakup might be better for all concerned.”
The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
Join more than 350,000 subscribers and keep yourself informed with a selection of The Week’s most interesting, enlightening and entertaining stories - plus daily puzzles.
Join more than 350,000 subscribers and keep yourself informed with a selection of The Week’s most interesting, enlightening and entertaining stories - plus daily puzzles.