51% stake in its Smith Barney brokerage unit to Morgan Stanley earlier this week, Citi on Friday announced it will reorganize into two operating units--Citicorp and Citi Holdings. The intent is to focus on its core businesses, including corporate and investment banking, while winding down some of the less profitable ones.

The new structure was announced on the same day that Citi reported a net loss of $8.3 billion for Q4 2008, the banking company's fifth consecutive quarterly loss. The company also announced definitive agreements with the federal government on the $301-billion TARP bailout first reported by GlobeSt.com last November.

Citi Holdings will manage the illiquid assets in this pool, the company's 49% stake in Morgan Stanley Smith Barney and other businesses that may eventually be combined or sold. How quickly these businesses will find buyers is an open question in the current environment.

With assets anticipated at $1 trillion, Citicorp will focus on both business and consumer clients, ranging from corporate and investment banking to branded card businesses. Citi Holdings will be run by a separate management team.