Not too long ago the news about Citigroup (NYSE: C) was unrelentingly bad. CEO Vikram Pandit (Vikram Pandit news) was getting pilloried by the media and many speculated that his time as CEO was limited. But the news that the government would exit its massive 27 percent stake in the bank seems to have led to a reappraisal.

The New York Times, which can certainly set a trend when it comes to media coverage, has weighed in with a very positive piece, right down to noting that Pandit seems to be walking with an extra bounce in its step. Clearly, he is bent on shedding assets and simplifying the company. He even told a Congressional panel: "We are breaking it up." Something that critics have long sought but something that previous bank executives passionately held to.

Now, the bets are in favor of Citigroup weathering the crisis and emerging as a strong bank, albeit smaller. But it will only be a bank. By that I mean it will not command a long-term premium for doing something innovative, like pioneering some sort of financial supermarket. It will not be an investment banking or trading powerhouse or alternatives power, it'll have to be content to be a really good, predictable, conservative big bank. After what it's been through, that ought to suffice. 

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