BRIEF-Citigroup MOVING WORK TO LOWER-COST LOCATIONS

Wed Dec 5, 2012 1:25pm EST

Dec 5 (Reuters) - Citigroup Inc : * CFO John Gerspach says bank is pursuing "simple back-to-basics model" * Gerspach: Citi is "highly" focused on winding down Citi holdings in

"economically rational manner" * CFO: moving functions to lower-cost locations in reorganization * Gerspach: funding for buyers is most significant impediment to selling

mortgage assets in Citi holdings * CFO: likely could not sell mortgage assets at current prices without hit to

regulatory capital and substantial writedown * CFO: US economic recovery too weak to cut mortgage loss reserves * Gerspach: if current housing outlook persists, Citi could sell $750 million

to $1 billion in mortgages per quarter

FILED UNDER: