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Fighting with one hand tied behind our back is how Citigroup (C  +1.5%) CEO Corbat...

Fighting with one hand tied behind our back is how Citigroup (C  +1.5%) CEO Corbat describes the bank with one-third of its capital tied up in activities contributing nothing to earnings - Citi Holdings and the $55B Deferred Tax Asset. The good news, he says, is both of these should wind down over time, meaning the bank will have significant excess capital. In the meantime, optimization of capital is a must.
Comments (2)
  • benitus
    , contributor
    Comments (1940) | Send Message
     
    I must certainly hope that he is right because he has been shrinking Citi too much to enable new profit ventures to take root.
    5 Mar 2013, 03:34 PM Reply Like
  • JeffreyLangBoyd
    , contributor
    Comments (663) | Send Message
     
    Doubt that many tax people would agree with me but perhaps it is time to begin discounting DTA's for the time value of money. It is going to take a number of years to monetize that DTA.
    5 Mar 2013, 08:02 PM Reply Like
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