Citigroup Inc.’s Mike Corbat is under the gun. While most shareholders appreciate what the CEO has done to cut costs and steady the ship, they now want him to narrow the bank’s gap in return on equity with JPMorgan Chase & Co. and Bank of America Corp.
Few could quarrel with that. But selling the Asian retail business, as some have advocated, would defy common sense. That may be one of the suggestions of a dissident group of large investors, analysts and some bank insiders, according to a recent article in the Financial Times titled “Citigroup: pressure builds for strategic shift.” Corbat and the board should say a firm but polite “no.”