Citigroup (C) Plans To Shed Its Japanese Brokerage Unit

The Wall Street Journal reported that Citigroup (NYSE: C) is looking to sell its brokerage operation, Nikko Cordial Securities, which is a reversal from what it was saying earlier that underscores the dramatic need for Wall Street banks to raise money now.

Citigroup said Nikko Cordial Securities, Japan's No. 3 brokerage in terms of assets, will be categorized as a noncore asset alongside other peripheral or ailing businesses.

Citigroup said just three days earlier that it wasn't including Nikko Cordial Securities in the spinoff of its other retail brokerage business, Smith Barney, to Morgan Stanley (NYSE: MS).

The WSJ reported that Citigroup wasn't planning to sell Nikko Cordial until the night of its earnings announcement. The final decision to sell the Japanese brokerage unit was CEO Vikram Pandit's decision. It is the last major brokerage that Citigroup owns after selling its Smith Barney division.

Citigroup felt it may be easier to find a buyer for its Japanese brokerage because while Japanese financial institutions have been hurt, they are all still relatively sound financially.

Vikram Pandit did say Citigroup was not in a hurry to sell Nikko Cordial Securities as the process could take several years.

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Citigroup Inc. (Citigroup) is a diversified global financial services holding company whose businesses provide a range of financial services to consumer and corporate customers.

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