Citi's Nightmares Just Keep Getting Worse

As recently as this summer, the strategy seemed to be working. Citicorp Chairman John S. Reed was making headway on his bold plan to revitalize his seriously ailing bank. He had reduced Citi's payroll by 5,000, to 90,000, and raised more than $1.6 billion in new capital through the sale of assets and convertible preferred stock. Wall Street analysts began expressing cautious optimism that the worst was over for the nation's largest bank.

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