Citigroup Inc., the fourth-biggest U.S. bank, should be broken into two businesses, one focusing on institutional clients and another on consumers, Keefe Bruyette & Woods Inc.’s Tom Michaud said.

“We think it is the beginning of the process, maybe not the sole conclusion,” Michaud, the investment bank’s chief executive officer, said Monday in an interview on Bloomberg Television. “The rules and capital requirements are so high that these banks cannot earn an acceptable return for shareholders, nor can they in some cases earn their cost of capital.”

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