| NEW YORK, April 24
NEW YORK, April 24 The chairman of Citigroup Inc
said on Wednesday that the company had already done the
"major work" in shrinking the bank down to a profitable core and
that directors are confident in the current strategy.
Responding to questions at the company's annual meeting
about whether the bank should be broken up, Chairman Michael
O'Neill said he believed Citigroup will earn more than its cost
of capital after executives carry out plans to make its global
operations more efficient and deal with issues left from the
"The major work has been done" in shedding assets, O'Neill
said, referring to the reduction of Citigroup's set of troubled
assets known as "Citi Holdings" to 8 percent of the balance
sheet, down from a peak of more than 40 percent.
He also cautioned that he expected "mid-course corrections"
in the strategy along the way.
O'Neill, in response to a question, said his relationship
with new Chief Executive Michael Corbat is good for the company.
"I work closely with Mike...I am not intrusive, but I am
interested," O'Neill said.
In October, O'Neill led the board in pushing out former CEO
Vikram Pandit and replacing him with Corbat. Since then some
observers have wondered if O'Neill, himself a former bank
executive, was dictating too many executive decisions.
Corbat, when asked what regulators might do to the company
if it had a trading loss like the "London Whale" derivatives
debacle at JPMorgan Chase & Co, said, "The way we run
our institution is different from JPMorgan."