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News Summary: Citi shedding units, courting Fed

The Associated Press
Monday, 15 Oct 2012 | 1:09 PM ET

BYE-BYE, BROKERAGE: Citigroup negotiated last month to sell its remaining stake of its retail brokerage to Morgan Stanley. But Citi didn't get as much money as it was hoping for, and it had to take a $4.7 billion charge to third-quarter earnings.

COURTING THE FED: Citi is stuck paying a token quarterly dividend of a penny to its shareholders, and needs permission from the Federal Reserve before it can be increased. Executives said they've been meeting with the Fed, and that each side has a better understanding of what is needed.

NOT QUITE READY FOR A PARTY: On Friday, Wells Fargo and JPMorgan Chase executives cited their strong mortgage results and said they thought housing had turned a corner. Citigroup executives were much more cautious, warning that the U.S. economy might not be strong enough to support a housing recovery.

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