The Financial Times reports that activist US union the American Federation of State, County and Municipal Employees has called on Citi's board to break-up the company, which it claims has become 'too big and unwieldy to properly oversee'.

In a letter to Citi's board, Gerald McEntee, President of the union, says that the board should carve up the company in order to 'restore shareholder value that it currently trapped in the sprawling financial supermarket approach'. He continues: 'Such a move would clarify Citi's financial position, would unlock value, and would allow greater focus in each core area, rather than the unwieldy jumble that has jeopardized our company's financial position and led to the loss of so much shareholder value'.

Citi, however, defended its 'universal banking' model, issuing a statement which said that 'our strategy is to build on the universal bank model, which positions Citi to capitalize on global growth trends and deliver the full benefit of its unique capabilities to clients all over the world'.

In the meantime, Citi came out Friday and posted its second-quarter earnings. The firm made a net loss of $2.5bn, due to $12bn in credit writedowns and loan-loss provisions. The loss was lower-than-estimated, and generally well received by the market.

Here's what some of the smart money said following the earnings announcement:

'It's time for Pandit to split Citi into the good bank.....and the bad bank......I question whether investors will have the patience for his push to change Citi's culture while its economic platform is evaporating in a firestorm'.

Peter Cohan, Peter A Cohan Associates (The New York Post)

'The worst news is out. I don't think it's going to get worse. (Although) it may not get better for a while'.

Malcolm Polley, CIO, Stewart Capital Advisors (Bloomberg)

'All thing's considered, it was a decent quarter'.

William Tanona, analyst, Goldman Sachs (The New York Post)

'Concerns of an imminent capital shortfall have abated'.

Mike Mayo, analyst, Deutsche Bank Securities (Reuters)

'Conditions have eased a little bit, and at the same time they have been able to grow their top line. They haven't had a lot of clients run out the door. They have been able to maintain relationships. Now it's just a matter of being more profitable'.

William Fitzpatrick, analyst, Optical Capital Management (Bloomberg TV)

'We cut our second-quarter losses in half, compared to the first-quarter. While there is still much to do, we are encouraged by our progress in delivering on our commitment to the re-engineering efforts'.

Vikram Pandit, CEO, Citi, (Press Release)

'Pandit seems to be doing the right things and is starting to build a base'.

Jonathan Monk, senior portfolio manager, Aerion Fund Management (Reuters)

'The worst may be over in the subprime mess. There appears to be a bandage on the wound'.

Andre Bakhos, President, Princeton Financial Group

Finally, Citi confirmed the departure of executive Michael Klein Monday. Klein, a 22-year Citi vet, has been co-CEO of the investment bank and transaction services since 2007. He is leaving to 'pursue other opportunities'.

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