Citi to Rescue SIVs

Well-capitalized banks typically have a Tier 1 ratio of about 6% of risk-adjusted assets. As of Sept. 30, Citi's Tier 1 ratio is 7.3%.

Tier 1 ratios may increase by 16 basis points as a result of Citi's latest moves, according to observers, which may put further pressure on the bank to scale back businesses, cut its workforce and offload ancillary assets.

The big bank is already on questionable financial footing after Prince left it with a tally of bad bank debt in leveraged loans and mortgage paper that could be nearly $14 billion.

Earlier Thursday, 16-year Citi veteran Chief Operating Officer Robert Druskin retired, becoming the first high-level executive to depart in the fledgling Pandit era. Citi CFO Gary Crittenden is expected to take on added responsibility.

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