Citi's (C) Sale #Fail
Down)
According to reports Friday, Citigroup (NYSE: C) has all but given up on an effort to sell its risky-borrower mortgage lender OneMain.
Citi began the journey last year, the NY Times notes, having talks with private equity firms and Warren Buffett's Berkshire Hathaway (NYSE: BRK-A). With recent discussion between Citi and PE firms like Centerbridge Capital Partners and Leucadia National (NYSE: LUK) breaking down, Citi is taking a break from making sales plans.
For the PE firms to fund the purchase of OneMain, securitization of new loans would have to occur. But since the market for risk, securitized debt has been weak at-best over the last few years following the financial meltdown in 2008, firms have backed-off for now.
Thing is, the arm is still profitable. Citi is likely to hold on to OneMain until markets get firmer footing, the Times notes.
OneMain will remain in Citi's CitiHoldings portfolio, which contains other assets Citi plans to divest over time.
Shares of Citi are up about 0.6 percent on Friday's session.
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Citi began the journey last year, the NY Times notes, having talks with private equity firms and Warren Buffett's Berkshire Hathaway (NYSE: BRK-A). With recent discussion between Citi and PE firms like Centerbridge Capital Partners and Leucadia National (NYSE: LUK) breaking down, Citi is taking a break from making sales plans.
For the PE firms to fund the purchase of OneMain, securitization of new loans would have to occur. But since the market for risk, securitized debt has been weak at-best over the last few years following the financial meltdown in 2008, firms have backed-off for now.
Thing is, the arm is still profitable. Citi is likely to hold on to OneMain until markets get firmer footing, the Times notes.
OneMain will remain in Citi's CitiHoldings portfolio, which contains other assets Citi plans to divest over time.
Shares of Citi are up about 0.6 percent on Friday's session.
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