Citigroup for sale?

According to reports in the Wall Street Journal, one of AmericaÔÇÖs largest banks, Citigroup, is considering selling parts of the company after losing more than $20 billion in the past year because of the global financial crisis. ┬á While the debate within the company is still in its preliminary stage, the newspaper said Citigroup executives are looking into selling its Smith Barney retail brokerage and its worldwide credit-card division and transaction-services unit, which is considered to be the bankÔÇÖs most profitable and fast-growing business. ┬á There is also talk that Citigroup is considering a merger with another bank. Goldman Sachs Group and Morgan Stanley are among the potential suitors pointed out by market analysts. ┬á CitigroupÔÇÖs shares have lost half of their value this week, and the bank has reported four straight quarterly losses. ┬á Citigroup has made 23,000 job cuts already this year, and earlier this week the bank announced plans to make an additional 52,000 new cuts, representing a total reduction of almost 20 percent of its staff. ┬á Brian Sullivan, chief executive officer of executive search firm CTPartners expects other financial services companies to make job cuts in the near future. ÔÇ£The bloodletting in the financial-services industry will accelerate in coming months, with job cuts doubling to about 350,000 worldwide by mid-2009,ÔÇØ he said, a figure equal to 20 percent of the global workforce at financial companies before the credit crisis. ┬á Some analysts believe Citigroup will not return to profitability until 2010, but officials have said the company has ÔÇ£ample capital, funding and strategic direction.ÔÇØ The bank has also said that itÔÇÖs underlying business ÔÇ£remains strong and revenues have been stable.ÔÇØ ┬á Citigroup is one of the nine financial companies receiving part of the $700 billion government bail-out program.