Citi Holdings is the subsidiary holding the assets that Citigroup has placed in runoff mode, as part of CEO Vikram Pandit's long-term "good bank/bad bank" strategy to right-size the company's balance sheet.
Konrad said it was "understandable for investors to want to take gains in stocks given uncertainty this fall with elections, fiscal cliff, and European economy," but Konrad sees greater upside for Citigroup, as
Citigroup's long-term shareholders are eager to see the company begin deploying excess capital. Following the Federal Reserve's annual round of large-bank stress tests during the first quarter of 2013, Konrad expects the company to be approved to raise its quarterly dividend from a penny a share to 25 cents, and also to buy back "approximately $4.5 billion" worth of common shares.
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