The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

The last resort: Offloading emerging markets businesses

Such is the fragile state of leading banks that they might have to sell their highly prized emerging markets businesses to survive.

Desperate times call for desperate measures. But just how desperate has it got for US and European financial institutions reeling from the credit crisis? Desperate enough to contemplate selling their most prized emerging market assets in the hope of raising capital quickly to shore up ailing balance sheets?

Consider Citi. In the past two months the biggest bank in the US has raised $20 billion from a liquorice allsorts of investors including sovereign wealth funds, private accounts and fund managers to maintain liquidity. It has also announced a public offering of $2 billion in convertible preferred securities and an additional offering of $3.5 billion of straight preferred securities. Throw other measures into the mix and the bank has raised almost $30 billion in recent months.

Citi has also cut its quarterly dividend by 41% to 32 cents a share and has said that it will continue to sell non-core assets. All of this is in response to the $18.1 billion write-down it has made because of its exposure to the leveraged loan and sub-prime markets.

Still, some analysts believe this is not enough and, with the US economy seemingly heading for a recession, Citi’s domestic consumer banking business is increasingly vulnerable.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree