Thursday, January 15, 2009

CitiCorp wants to divorce you

That is, if you're a regular schmuck or a small businessman. Citicorp is abandoning its financial supermarket. They're in the process of selling a good part of Smith Barney to Morgan Stanley and will be announcing plans to focus on large companies and rich people. It will dump its consumer-finance operations and its credit card businesses that do not cater to the elite. They plan to be a third smaller.

It's ironic that the nucleus of the company was Commercial Credit, a company that catered to we less affluent.

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