Advocates of breaking up the nation's megabanks just added a prominent ally.

Keefe, Bruyette & Woods, a New York investment banking firm known for its expertise in commercial banking, on Monday called on Citigroup to split itself up into two separate entities. Restructuring the company – the nation's fourth-largest bank by assets – would be a boon for shareholders, providing for a faster return of excess capital, KBW said in a note to clients.

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