Citi Search Turns Inward

Meant to help it shore up its balance sheet, a $7.5 billion cash infusion from the Abu Dhabi Investment Authority has still left questions about whether the institution needs more cash.

Lately, among the more pressing concerns for Citi, as it scours for a new prince, have been how many staffers it could be forced to cut as it retrenches its operations from headier times. News reports had speculated that employee cuts may be of the magnitude of 45,000. Bischoff addressed the potential for cuts in the internal memo.

"Our Business Heads are planning ways in which we can be more efficient and cost effective," Bischoff wrote, noting that the company wanted to "position our businesses and staffing levels in line with economic realities."

The manifold issues coupled with rumblings that Citi should ultimately be broken up into a wealth management firm, global bank, and securities firm makes for a dicey entry point for even the most seasoned veteran. And it's exactly the scene that Pandit may encounter, should he ultimately accept the charge of leading the company.

"The 1990s was all about creating a financial supermarket, but I think we will see that change," said one New York Wall Street observer that declined to be identified.

"You split [Citi] up and you have a chance at building some culture," Bruce Foerster, president of South Beach Capital and a former Lehman Brothers banker. "There's only one culture at Citi and that's growth by acquisition. Citigroup is a bouillabaisse, and that doesn't work."

No announcements from Citi have been made but expectations are that a new CEO will be named imminently. Other candidates left standing include Citi CFO Gary Crittenden and Robert Willumstad, a former president at Citi and chairman of AIG (AIG).

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