Core Viewpoint - Citigroup is planning to re-enter the brokerage business to serve small investors, which is part of CEO Jane Fraser's broader turnaround strategy following a significant reorganization and cost-cutting measures [1][4]. Group 1: Company Strategy - CEO Jane Fraser's strategy has led to a 47% increase in Citigroup's shares over the past year, outperforming the S&P's 15% rise [2][3]. - Citigroup is exploring acquisitions, potentially merging with a European bank, as it seeks to enhance its competitive position in high-end businesses like M&A [3]. - The bank's wealth management business is currently small and fragmented, but expanding this area is viewed as a cost-effective way to generate stable earnings compared to trading or investment banking [4]. Group 2: Potential Acquisitions - Citigroup is considering acquiring mid-sized brokerage firms, with discussions reportedly including firms like Stifel, valued at over $11 billion, and Raymond James, valued at $33 billion [5][6]. - Stifel has 2,400 financial advisers, while Raymond James has 8,000, indicating that acquiring either could provide Citigroup with a foothold in the brokerage market [6]. Group 3: Historical Context - Citigroup's previous brokerage firm, Smith Barney, was a major player on Wall Street before its sale to Morgan Stanley during the financial crisis, which significantly impacted Citigroup's market position [7][13]. - The decline of Citigroup was exacerbated by the 2008 financial crisis, leading to multiple government bailouts and the shedding of assets to stabilize the bank [12][13].