Citigroup CEO wants to reduce bank's assets by 40%

Citigroup CEO Vikram Pandit wants to see the bank's asset base reduced by 40% from its peak before the start of the financial crisis. He spoke during a European Central Bank panel on financial policy, describing Citi's approach as a return to basics. "Today, our internal rule of thumb is no business line should take risks that would result in losses greater than a year's earnings," Pandit said. He also said the market's structure needs an overhaul, pointing to "notoriously opaque" fixed-income and derivatives markets as an example.

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Wall Street Journal (tiered subscription model), The · Bloomberg Businessweek