In a statement Wednesday, Mr. Corbat said his bank remains committed to “our unparalleled global network and footprint.” However, he added: “We have identified areas and products where our scale does not provide for meaningful returns.”
He promised that the bank would continue to trim, whether in “technology, real estate or simplifying our operations.”
The paring hasn’t always gone as well as Citi has hoped. This fall, for example, when Citi negotiated the sale of its stake in the retail brokerage Morgan Stanley Smith Barney, it got far less than it wanted from the buyer, Morgan Stanley.
Mr. Corbat said Citi “has come a long way over the past several years.”
Citi said it expects the cuts to save $900 million next year, and more in the following years. They will be a drag, though, in the short term: Citi said it expects to record pretax charges of approximately $1 billion in the fourth quarter.
By Douglas Holtz-Eakin
The young drop coverage to avoid higher premiums
Independent voices from the TWT Communities
We welcome you to the intimate and personal thoughts on the news and events we, as editors, watch, read, and discuss with our writers every day.
Consummate traveler Todd DeFeo explores the unique stories that make destinations worth going to.
Looking at pop culture, politics and social issues.
Political commentary and literary criticism in an era of eroding liberty
Benghazi: The anatomy of a scandal
Vietnam Memorial adds four names
Cinco de Mayo on the Mall
NRA kicks off annual convention
California wildfires wreak havoc