is looking at technology as an area where it can pare costs and possibly save "significantly more" than original estimates.
The New York-based financial institution believes it can save "significantly more" than $1 billion this year by integrating hundreds of systems that have been kept separate, according to the
Citi declined to comment to the paper.
Citi had originally believed it could save $3 billion over three years from the technology and operations consolidation, but "progress in reducing overlaps and linking IT infrastructure across businesses that had run individual systems" led the firm to increase its target, the
The article says that many of the company's internal systems were never consolidated after the 1998 merger between Citicorp and Travelers. The deal, which turned the company into a financial supermarket, is now being unwound by CEO Vikram Pandit as Citi attempts to weather its massive exposure to troubled assets in the economic downturn.
Citi has been slimming down its expansive businesses in efforts to rein in expenses since the credit crisis began, but under pressure from regulators and investors it has taken even more drastic steps as losses mount and capital became thin. Citi split the company into a good bank-bad bank structure under Citicorp, the good bank, and Citi Holdings, the bad bank.
The company has been forced to go hat in hand to the government on several occasions for a total of $45 billion in additional capital. Citi was told earlier this month as a result of the government stress tests that it needed an extra $5.5 billion in capital to weather the "more adverse" of two worsened economic scenarios the government models evaluated.
Bank of America
was told it needed roughly $34 billion in capital.
did not need any additional capital.
Citi shares were flat on Friday.