This just in from Reuters; Robert Rubin's departure from Citigroup appears to have been a prelude to this. The concept of a "bad bank" is intriguing—wouldn't that be a matter of interpretation, though?
Reuters updated the article (and ratcheted up the worry) while I was working on this post; here are the first few paragraphs of the milder version, with the first few paragraphs of the more dire one "Worries Over Citi Mount") afterwards, with a link.
Here's the scarier Reuters post, updated a few minutes ago to reflect Citi's tumbling stock prices today:
Worries over Citigroup mount
Read the rest of the article.