While Professor David Beim believes there is a template for successfully nationalizing banks, he thinks it does not apply to Citibank.
"The problem with Citi is that it's absolutely enormous," Beim says. "Citi has a balance sheet of about $1.9 trillion. Who in the world is going to be buying that?"
To rid Citi of its bad assets, Beim suggests shrinking the bank and selling off individual pieces.
Professor David Beim had a 25-year career in investment banking, following which he became a professor in the Finance and Economics Division of Columbia Business School. He joined Columbia as an adjunct professor in 1989 and has been a full-time professor of professional practice since 1991. His areas of teaching include corporate finance, international banking and emerging financial markets.
He graduated magna cum laude with a bachelor's in political science from Stanford, and he continued his education as a Rhodes Scholar at Oxford, earning a master's in politics.
Beim's Wall Street career included 10 years at First Boston Corporation (1966-75), where among other assignments he started and ran the project finance group. He served as executive vice president of the Export-Import Bank of the United States during 1975-77.
Following that, he joined Bankers Trust Company to start and run its investment banking business. During 1978-87, he was executive vice president and head, corporate finance department, and member of the management committee at Bankers Trust. From 1987 to 1989, he was a managing director at Dillon Read & Co.
Jane Trombley is Director of Public Relations at Columbia Business School.