Citigroup's first-quarter earnings weren't hugely inspiring. You have to wonder whether this will accelerate the move by many clients and brokers to leave the company. Business Week reports that after some hedge fund blow ups--which required $660 million infusion--some irate clients are threatening to defect to another firm. They seem to be following brokers. One big producer apparently has already made the move to Morgan Stanley. Others are said to have hired attorneys to draw up separation agreements. Things likely aren't as bad at Citigroup as they are at Bear Stearns, but that is hardly comforting. Sallie Krawcheck is said to be in damage control mode.  

For more:
- here's the Business Week article

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