Citicard IPO on the horizon?

Citi (C) is making more changes. The financial giant named Teresa Dial CEO of its North American consumer banking operation and unveiled a new organizational chart that will “drive greater cross-business collaboration; eliminate bureaucracy and create a nimbler, more client-focused organization; ensure strong risk management and capital resources; and drive cost and operational efficiencies to generate additional shareholder value.”

As part of the move, Citi is separating the consumer banking unit from its global cards unit, which will be led by Steven Freiberg. That decision, reported earlier by Bloomberg, has Yves Smith at Naked Capitalism musing about further developments at Citi. “This change could be a precursor to a sale or public offering,” she writes. “Citi has a very solid card business and it may be forced to sell some crown jewels if writedowns continue.”

Others are less impressed by Monday’s moves. While Citi bills the reorganization as allowing the firm to “achieve greater client focus and connectivity, global product excellence, and clear accountability,” Charles Bobrinskoy at Ariel Capital Management tells Bloomberg television investors will continue to worry about possible losses on Citi’s massive mortgage portfolio until they get information that allows them to focus their attention elsewhere.