Citigroup has decided to become a smaller institution, according to a report.
The company is splitting to ultimately reduce its overall mission to two areas only: wholesale banking for large corporate clients and retail banking for customers in selected markets around the world, the Wall Street Journal learned from a person familiar with the moves.
The beginning of a possible breakup of the company was confirmed today when Citigroup said it is in talks with Morgan Stanley about a potential combination of Citi's Smith Barney retail brokerage and Morgan Stanley's wealth management business.
An agreement with Smith Barney joint venture is expected to be announced Tuesday, after the close of the market.
Citigroup has lost more than $50 billion dollars since the beginning of the crisis, and a split could stop its investors to hammer the share price of the company.
The question for many experts is whether Citigroup will stay on the level to compete with other financial institutions, when the timing points to a globalized financial market.