Citigroup plans to revamp its capital markets business under its investment-banking arm.

As part of an ongoing internal restructuring, Citi will divide its capital markets group, which includes both equity and fixed-income traders, both by region and along current product lines. The bank is expected to make a formal announcement tied to the changes sometime this week, according to media reports.

Citi chief executive Vikram Pandit's mode of operation is increasingly becoming apparent, and that essentially is to split the company up and allow it to function as a series of smaller operating units.

Last Monday, the bank announced the restructuring of its Asia-Pacific business, which, similar to the anticipated forthcoming plan, split the businesses regionally. In that case, the structure was divided into Japan, North Asia, South Asia and Southeast Asia-Pacific and was also split across its product groupings.

Richard Bove
, analyst with Ladenburg Thalmann, believes in what Pandit's doing, saying in a recent report, "Vikram Pandit's best move since taking control of Citigroup is to decentralize operations." Bove also suggests the forthcoming changes will "enhance" revenue growth."

Citi shares were off fractionally on Monday morning

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