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Citi Plans $400 Billion in Asset Sales

The bank plans to sell non-core assets as it tries to boost revenue growth.
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Updated from 9:39 a.m. EDT

Citigroup

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plans to shed up to $400 billion in additional businesses, as CEO Vikram Pandit continues his shakeup of the troubled bank.

At Citi's Investor/Analyst Day in New York Friday, Pandit was expected to say he doesn't plan on breaking up the behemoth bank, as some have called for, but will instead focus on paring non-core assets to lower costs and boost flagging profits.

The asset sales could take years and some assets may never be sold, the paper said.

Citi already has begun shedding assets. Earlier this month, the bank and partner

State Street

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sold employee benefits joint venture CitiStreet

to

ING

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for $900 million.

Pandit has suggested since he assumed the bank's top post in December that he would look at asset sales and he has followed through in recent weeks with a

management reshuffle

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to refocus the bank's leaders on its core business.

It all comes as the bank has been one of the hardest-hit Wall Street institutions during the credit crunch that has gripped markets since last summer. Citi in April

reported a $5.1 billion first-quarter loss

and $12 billion in writedowns of securities tied to shaky debt.

The bank also has raised more than $40 billion through sales of common and preferred stock and slashed its dividend to preserve capital.

Washington Mutual

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,

Wachovia Bank

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and

National City

(NCC)

have also raised capital after posting first-quarter losses.

Rivals

Wachovia

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,

Merrill Lynch

(MER)

and

UBS

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have also reported huge losses and writedowns in the quarter.

Shares of Citigroup were recently trading at $24.07, down 3 cents on the day.

This article was written by a staff member of TheStreet.com.