Most people assume that Citigroup will have no choice but to slash its dividend, taking its yield much lower. Since the drumbeat for such a cut started in earnest in late October, when Meredith Whitney first told clients it had to happen, the stock has taken a huge haircut. Business Week Online notes that Mr. Market seems to have priced in the cut already. So would an actual cut be a huge deal? If the dividend were cut 50 percent, it would still be higher than JP Morgan Chase's--notes one money manager. But the bigger worry is that a dividend cut may still not be enough to meaningfully improve Citigroup's capital position. Pandit is no doubt aware of this.  

For more:
- here's the Business Week Online article