Citigroup Sells Stake in Chinese Lender- Morningstar

Citigroup locked in profits by selling a small stake in Shanghai Pudong Development Bank.  This is significant due to the fact that Citigroup is continuing to improve their capital position by shedding non-core assets.  Due to the substantial losses Citigroup has incurred during the financial crisis, increasing profitability both increases capital through retained earnings, but also through the utilization of their deferred tax assets (DTA).  Citigroup still owns 20% of a mid-sized bank in China which we would like to see monetized in favor of aggressive stock buybacks pending approval from the Fed as long as the discount to tangible book value persists. 


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