Subprime fall-out Citigroup’s strained balance sheet is set to receive a $2.5bn boost from the imminent sale of its Japanese brokerage Nikko Cordial, in a move that could strengthen Citi’s hand in talks with the US government over its capital needs.
Bankers said the sale of the unit to Sumitomo Mitsui Financial Group, announced on Friday, would result in an accounting loss for Citi but would increase its tangible common equity – a closely watched measure of its financial health.
