For Citigroup, asset sales likely to be difficult

The agreement for the sale of Chevy Chase Bank to Capital One Financial Corp has a clause that would have Capital One pay more if the acquired bank's assets perform better than expected.

So questions about the quality of Citigroup's private-label credit card portfolio in a declining economy, for instance, could potentially be addressed by structuring a transaction where payments are made over time, with the amount depending on defaults, the banker said.

"Whether Citigroup will be better off accepting prices today or deferring sales remains to be seen," Sonenshine said. "In both cases, AIG and Citi, we are looking at the slow but inevitable disaggregation of overextended financial services companies that have demonstrated an inability to manage risk."

(Additional reporting by Dan Wilchins; editing by John Wallace)

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