Former CEO of Citigroup Sandy Weill called for the breakup of the bank in July, citing the moral hazard that stems from the notion that an institution is too big to fail.Now, a group of Catholic nuns is trying to answer his prayer. Along with the public-workers union Afscme, the Benedictine Sisters of Mount St. Scholastica want Citi shareholders to vote on the creation of an independent committee which will investigate possible ways to break up the bank.
The claimants say a break up this is the best way to eventually recover shareholder losses, as Citi’s stock has consistently traded below its book value.
Citi’s divestitures since the financial crisis total over $600 billion and 60 businesses, but Matthew Patsky, CEO of Trillium Asset Management (which represents the nuns) claims that “Citigroup’s progress toward simplifying and de-risking its business has been slow and incomplete.”
Michael Corbat, who replaced Vikram Pandit as CEO, has a history of shedding bad assets.
But the nuns may need divine intervention to force Corbat to continue divesting Citi’s assets, which amount to almost $2 trillion.
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