Citigroup to separate into good and bad bank

Citigroup Inc, struggling to contain losses, is separating assets into a "good bank" and a "bad bank," a person close to the matter said.

The bad bank assets would stay on Citigroup's balance sheet, but could be separately managed. They would include illiquid assets, including collateralized debt obligations. The good bank would include Citi's main businesses, such as corporate banking, investment banking, securities underwriting, and trading of liquid securities for customers.

Citigroup would consider selling some businesses, such as Primerica Financial Services, the person said. Citi declined to comment.