Citigroup selling NikkoCiti: report

November 30th, 2008 - 1:25 pm ICT by IANS  

New York, Nov 30 (IANS) US banking giant Citigroup has decided to sell off NikkoCiti Trust and Banking Corp, its custodian administration arm in Japan, in a bid to overcome the financial crisis it is facing, The Wall Street Journal said Sunday.Citigroup, which is headed by Indian American Vikram Pandit, received a massive $20 billion bailout package from the US government as its stocks dropped by as low as 60 percent last week.

Quoting two people familiar with the matter, The Wall Street Journal said the bidding process to sell off NikkoCiti Trust and Banking Corp is expected to begin Monday.

Japan’s large trust banks, such as Mitsubishi UFJ Trust and Banking Corp, and Sumitomo Trust and Banking Co, are expected to be among its bidders, the report said.

NikkoCiti is based in Tokyo. Its activities include the delivery and settlement of securities and the calculation of investment trust unit prices.

Earlier this month, the Citigroup had announced that it will reduce its employee strength by more than 50,000 and reduce its expenses by 20 percent next year. The Citigroup, now under pressure from the US government after the bailout package, to slim down, is expected to take other measures in the coming weeks.

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