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.”
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