Economy Next Hurdle for Citi

Twice already during Pandit's tenure, Citi has indicated its staunch opposition to strategic moves that might alleviate some of the firm's financial pressure, only to find itself having to do an about-face weeks later. It cut its dividend to 32 cents after a trove of analysts suggested that such action would be necessary to maintain its capital ratios. The bank also said it would not be forced to take some $58 billion in so called structured investment vehicles onto its balance sheet, until Pandit announced that it would have to do just that weeks after he took the reins of the firm.

If Cramer's Wrong About Recession, Explain Citi

At this point, it appears that any number of actions could be in the wings for Citi, including a spinoff of businesses, more job cuts and future writedowns. The future of the franchise, however, will still center on integrating the financial firm's various businesses and making them run efficiently and smoothly -- a task neither ex-CEO Weill or Prince has been able to accomplish.

Bruce Foerster, president of consulting firm South Beach Capital, notes, "over the longer term, assuming that they're attacking the balance sheet with a vengeance, the next thing the board needs to do is ask, 'do we retain this behemoth as it is?'

"You can't just take your paint brush out and put a new coat on Citi," Foerster adds. "That's been tried before."

Pandit said during the earnings call that "these are complicated times." But what's becoming even more complicated for Citi shareholders is figuring out the firm's bigger picture strategy.

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