This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Most Crazy Company Sellers Since the Financial Crisis


Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Citigroup (C)

One of the largest Troubled Asset Relief Program and Treasury bailout recipients during the financial crisis, Citigroup took over $45 billion in government funds in exchange for preferred shares to survive. The company, which saw its stock fall below the price of a McDonalds (MCD) hamburger, has spent the last three years selling assets to raise much needed capital. In 2008, Citigroup created CitiHoldings to unwind or sell $850 billion in "non-core" assets to pay back its government ownership, which peaked at nearly 40%, and repair its balance sheet.

As a result, Citigroup (C) earnings are being dictated by what we've called an ever lightening Sisyphean rock in CitiHoldings.

In 2009, just after the split between Citi and CitiHoldings took effect, asset sales began at a frenetic pace. That January, Citi ceded its ownership of brokerage Smith Barney to Morgan Stanley (MS)in a joint venture that formed the world's largest brokerage and netted Citi almost $3 billion in much needed cash.

Months later, Citi sold its Japanese brokerage Nikko Cordial to Sumitomo Mitsui Financial Group, the third largest bank in Japan for nearly $8 billion and it got another $2 billion in excess cash. Citi kept one Asian brokerage unit, Nikko Asset Management, which it later sold to Sumitomo for roughly $1.25 billion -ending an ambitious foray into Asia.

In 2010, the sales kept on humming at CitiHoldings; during the year Citi reduced its assets by over $140 billion -a reduction of 28%. Among the most publicized sales was a selling of shares in its insurance unit Primerica (PRI) to private equity fund Warburg Pincus, which later were sold in an IPO. That sale, a further push away from Citi's "financial supermarket" business model where anything money could be done under the roof of Citigroup.

Last year, the company also started selling some of its bundles of securities tied to real estate and credit card debt the bank had issued. In September 2010, Citi sold its stake in Student Loan Corp to Discover Financial (DFS) for $600 million and another $3.5 billion in commercial real estate debt to JPMorgan Chase (JPM).

Earlier in November, Citigroup sold music titan EMI in two separate pieces for $4.1 billion after seizing the company from private equity firm Terra Firma earlier in the year.

With the EMI sales, Citigroup's crisis sales are nearing $20 billion in total, but company management has cautioned investors against expecting many more sales. Instead, the company will let its CitiHoldings assets mature over years, if not decades. Meanwhile, the stock flounders.

4 of 6

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs