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Citigroup (C) has a credit card business worth $60B by itself, yet the entire bank is valued at...

Thursday, September 13, 2012, 12:18 PM ET
Citigroup (C) has a credit card business worth $60B by itself, yet the entire bank is valued at $97B, says former Morgan Stanley CEO Phil Purcell (who spun off Discover during his reign), again making the case for breaking up the big banks. If banks are going to trade at half of book, but have business lines that would fetch 2-3X book, it's a no-brainer. "The shareholder is getting cheated."

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garyt01 Comments (19)

And what does Morgan Stanley have to show for that now? Probably wished it had it back. I believe Citigroup, long known for its credit card operation, should keep it. Saying the credit card division would sell for 2-3 times book is easy to write down, but it is not a sure bet. Always looking at the short term is not what is usually best for a bank. Short term thinking is what leads financial institutions into trouble. Just check the Past. Each division of a bank has its time and place.

I do not own Citigroup nor intend to buy it at any time in the near future.

13 Sep 2012, 01:02 PM Reply Like

williambaxter Comments (169)

yah! Phil put the "stocks and socks" deal together for Sears when he was advising Sears CEO, Ed Brennan. The Dean Witter/Sears fit gave Purcell religion. Only when he dismanteled the Sears conglomorate did the shareholders make money and I might add..,they did well! So...., maybe, Phil knows what he's talking about...

13 Sep 2012, 01:30 PM Reply Like