Citigroup Inc is reported to have planned to sell its trust bank unit in Japan, NikkoCiti Trust and Banking Corp. Reports claimed that the recent move is considered as part of Citigroup's global restructuring efforts. Citigroup's Japan bank unit might have assets of about 10 billion yen to 40 billion yen. The organisations which are likely to make bid for NikkoCiti include Mitsubishi UFJ Trust and Banking Corp, a subsidiary of Mitsubishi UFJ Financial Group, Sumitomo Trust & Banking Co Ltd and Mizuho Trust & Banking Co Ltd.

 

According to media reports, till September 30, the unit of Citigroup had 136 employees and 20 billion yen in capital. One of the largest financial organizations of the US, Citigroup Inc has been suffering huge losses owing to global financial crisis. Only recently, the US government has rescued Citigroup by injecting new capital. The ailing condition of the bank had forced it to cut more than 75,000 jobs including 50,000 positions, last month.

 

Although nothing has been revealed about the recent sale of NikkoCiti, it is expected that auction will take place as early as Monday (December 1). The on-going global economic slow down has affected all the major sectors of US and other countries. The governments of all the countries have undertaken innumerable steps to rescue their economy from the onslaughts of financial breakdown.