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  • Is Citigroup Inc. (NYSE:C) Selling Assets at Crazy Prices ?

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    Thursday Oct. 7, 2010 at 09:21 am EST
     
    Citigroup Inc. (NYSE:C) Sells Credit Card Debt to GE 
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    Reading News like these forces you to think that Citi might be selling assets at fire-sale price. Citi Holdings CEO Michael Corbat gives assurance that Citigroup Inc. wouldn't sell assets at fire-sale prices, though the bank has sold assets at liquidation value. Citigroup Inc. on Thursday said it sold $1.6 billion of credit-card assets to General Electric Co. in the process of selling non-core businesses to concentrate more on its core businesses.


    Terms of the deal with GE were kept confidential. As per Wall Street journals report, Citi Holdings, the bank's division in charge of disposing unwanted loans, securities and businesses, held about $465 billion in assets as of June 30, including CitiFinancial North America, its big consumer-finance business. while the division held $582 billion when Citigroup formally started to sell or its non-core businesses . As of June 30, Citi Holdings made up about 24% of Citigroup which is a huge portion to get rid of. Shares of Citigroup Inc. closed at $4.1 at resistance level of $4.13. The resistance levels above are at $4.25 and $4.98. The support levels below are at $4.03, $3.93, $3.8. Shares of Citigroup are expected to hold strong after the Treasury announced to sell some preferred shares last week. Treasury also said that they made profit by selling Citi shares. The earnings announcement scheduled on Oct. 18th, 2010 will determine the future direction of Citigroup Inc. (NYSE:C)


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