May 9, 2008 9:33AM

Citi’s Pandit Defends Size; Dismisses Calls For Break Up

By Donna Fuscaldo

Despite numerous calls for Citigroup to break the behemoth up, as expected Pandit dismissed that notion, saying the company is not a conglomerate or a financial supermarket but a “global universal bank.” He argues being a universal bank, especially in emerging markets where the capital markets are undeveloped, is the best model for Citigroup. Pandit says that while any model works in good times, having a universal bank in bad times is the way to go. (Too bad the stock price so far this year doesn’t reflect that.) “The economics are clear to me. The best value is created through a large global integrated financial structure and by operating a fully integrated company,” says Pandit.  He says that will create “extra value to shareholders.” Shares of Citigroup are trading down less than 1% to  $24.18.