Citigroup is going to sell its stake in credit card company Redecard, reports Reuters.
Brazil’s Itau, which already holds 46.4% of Redecard, is expected to buy a portion of the stake.
In January last year Citi raised 1.06 billion reais when it offloaded a 6% stake in Redecard.
The move comes ahead of vital stress tests imposed by the Obama administration on the capital of US banks ahead of the release of more bail-out funds. Shares in Citi, and compatriot Bank of America, have nosedived in recent days amid fears that both banks face the prospect of overnight nationalisation.
L.D.