Shareholders of JPMorgan Chase (NYSE: JPM) and Citigroup (NYSE: C) will soon get to vote on a shareholder proposal seeking to break-up the mega banks. While the proposal is not likely to get anywhere, it does highlight growing concern that the banks might be too big to manage.
Today, Keefe, Bruyette & Woods analyst Brian Kleinhanzl weighed in on the matter. He believes that Citi could be one of the only U.S. global systemically important bank that could successfully split up and said this should unlock meaningful shareholder value – 50+% returns versus the current market capitalization. Continue reading “The Case for a Citigroup Breakup”