The saga for
Citigroup continues and rest assured that it is not going to subside anytime in the near future. In an effort to bring in capital, it is now
planning hoping to sell its Japanese consumer finance unit. The move is intended to plug another hole in Citigroup's very leaky dam. In doing this, there are two results that Citigroup is likely trying to achieve:
- Keeping the parent alive by selling off the child, at least for the time being;
- Stopping any drag from the Japanese division which is reported to have over $400 billion of assets, approximately 20% of the total value of Citigroup's assets.
The problem is that the valuing of these assets has become difficult as it is now a moving target since many of the traditional metrics have been tossed out during this historic market condition. Knowing that, it is interesting that Citigroup would consider selling at a time when the price could be at its lowest.
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