Why Citigroup Inc (C) Won’t Break Up After All

Citi and Bank of America (NYSE: BAC) are two of the bigger banks that are still trading well below their book values. But the stress test raised issues with Bank of America, where the bank has until September to correct weaknesses in its capital planning process.

Citi still trades at just 75% of its book value, which is cheaper than nearly every big bank out there. The breakup talk might be a bit premature, as Citi got high marks on its Fed stress test and it’s already proactively slimming down its size.

Sure, it has some work to do on generating higher returns, but it’s been making serious strides over the years. Assuming this continues, the breakup talk will fade and Citi could turn out to be one of the few values in the banking space.

This article is brought to you courtesy of Marshall Hargrave from Wyatt Research.

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