Citigroup 'to sell UK online bank Egg'

4 August 2010

Citigroup is planning to sell UK online bank Egg, with parties interested in purchasing the asset including Santander and the newly-formed Metro Bank, it has been reported.

Insiders told the Financial Times that Citigroup has been holding informal talks over a potential divestment of Egg for a while, but is now close to holding an official auction for the bank.

Citigroup is attempting to rid itself of more than $800 billion in non-core assets after it made huge losses during the financial crisis.

It is uncertain whether the firm will be able to make a profit on Egg, which it was purchased from Prudential in 2007 for £575 million ($917 million).

Last week, sources told Bloomberg that Citigroup is considering moving its proprietary trading team to its hedge fund unit.

The move is one possibility for complying with the Dodd-Frank Act's requirement for banks to stop wagering their own money on securities and markets.

By Gary Cooper

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