BUSINESS BRIEFS
Citigroup eyes breakup as stock falls below $4
Advertiser Staff and News Services
NEW YORK — Pressure intensified on Citigroup to sell part or all of itself as its stock fell below $4 a share yesterday and fears escalated about future loan losses.
CEO Vikram Pandit told managers earlier in the day he opposes breaking up the company, but the bank's board of directors met yesterday to discuss whether to do exactly that, the Wall Street Journal reported.
What investors are worried about is that all the risky debt sitting on Citigroup's balance sheet will eventually turn into losses as the economy worsens and the markets stay turbulent — losses that could be nearly impossible to reverse.
AUTOMAKERS TOLD TO OPEN BOOKS
WASHINGTON — Democratic leaders ordered Detroit's Big Three automakers yesterday to submit what amounts to a detailed loan application to Congress so lawmakers can decide whether to give the beleaguered industry an emergency $25 billion lifeline.
In a letter to the auto executives released yesterday, House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid demanded a detailed accounting by Dec. 2 of the companies' financial condition and short-term cash needs, as well as how they would achieve long-term viability.
WAL-MART CHIEF STEPPING DOWN
NEW YORK — Wal-Mart Stores Inc., the world's largest retailer, unexpectedly announced yesterday that its chief executive will retire in February and be replaced by the head of its international division.
The surprise change in leadership right before the crucial holiday season comes as Wal-Mart has roared back to success as people looking for bargains shop more at discounters. Still, the company faces hurdles ahead amid slowing growth in the U.S., and analysts say the decision to tap an international executive serves as a testament that the company sees its future growth oversees.
Wal-Mart said Mike Duke, 58, vice chairman of its international division, will take over from Lee Scott, 59, effective Feb. 1.
