Contrary to popular opinion, Citigroup Inc.'s new CEO Vikram Pandit (pictured at left) is likely to keep the firm intact rather than breaking it up, CNBC's Charles Gasparino said on Tuesday without citing sources. That decision is not final and is still subject to change, Gasparino added. Although Citi won't unload large assets like Smith Barney, the firm is still likely to sell smaller assets and cut up to 24,000 jobs, the report noted.
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Some have argued that Citi is simply too large to be run efficiently and should be broken up, leading to speculation that the first thing Pandit would do is dismantle the empire Sandy Weil built. However, it seems Pandit may believe the counterargument that Citi's recent difficulties stem more from execution than size. Citi isn't the only bank stumbling. A number of its peers -- Bear, Stearns & Co., Merrill Lynch & Co, Morgan Stanley -- face similar circumstances. The big question is: Can Pandit get Citi to execute any more effectively than Charles Prince? And can he do it quickly enough to allay frustrated stockholders? - Matthew Wurtzel
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See TheDeal.com: Citi names Pandit CEO, Bischoff chairman
