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Vikram Pandit also said that with the new Citi Holdings, we will be able to tighten our focus on risk management and credit quality for businesses with strong market positions that that are not central to our franchise.

The Citicorp will cover the company’s business and retail banking units. Citicorp is an entity with assets of some $1.1 trillion dollars with banking franchises in the U.S., Asia, Latin America, Central and Eastern Europe and the Middle East. Mean while the none core business will be covered by Citi Holdings.

According to CNN, Ciitgroup also confirmed on Friday it had entered into a definitive agreement on a loss sharing program with the U.S. Treasury department, the Federal Deposit Insurance Corporation and the Federal Reserve Bank of New York, covering assets worth $301 billion.

This means that Citigroup will accept responsibility for the first $39.5 billion dollars in losses, after which the taxpayer would pay 90 percent of the outstanding amount. The agreement reduced the company’s risk-exposure. It also added 14 billion dollars to its loan loss reserves to help it buffer further economic turmoil.

Vikram Pandit also said that their results continued to be depressed by an unprecedented dislocation in capital markets and a weak economy.  He also said that a number of their core customer franchises continued to perform well and Citi’s customers remain active and engaged with them.

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