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The article focuses on an increase in the number of banks in Europe and the U.S., including HSBC Holdings PLC and Citigroup Inc., that are, in 2007, considering selling branches or entire banking units in an effort to make sure that their finances remain stable in 2008. The banks feel that the credit crisis of 2007 may continue in 2008 and they want to protect themselves from further financial damage.

The article reports on the resignation of Citigroup Inc.'s chief executive officer Charles Prince, which followed an announcement from the bank that it had lost between $8 billion and $11 billion related to subprime mortgages. A discussion of the bank's decision to make Sir Win Bischoff as interim chief executive and Robert Rubin as chairman is discussed. Difficulties the bank will face as a result of the mortgage related loses, and in finding a replacement for Prince, are discussed.

Focuses on the banking industry in the United States and the impact of Citigroup Inc.'s announced settlement of a class-action lawsuit for their involvement in the accounting scandal related to the former WorldCom Inc. Comments from Guy Moszowski, who follows banks and securities firms at Merrill Lynch & Co., suggesting Citigroup's move to raise its reserves for liability associated with Enron Corp. will put pressure on Morgan Stanley to do the same; Speculation about future investor lawsuits in the banking industry; Comments from John Coffee, a law professor at Columbia Law School, regarding the litigation environment in the U.S.

The article reports on a record high which was seen at the Dow Jones Industrial Average on October 1, 2007, despite reports from Citigroup Inc. and UBS AG which indicated that the two banks had received millions of dollars of losses as a result of their involvement with mortgage linked securities and would have to initiate write downs as a result.