"In retail banking, it is get big, or get out, " said Glenn Schorr, an analyst with Nomura Securities International.

WSJ: Citibank's Overhauled Retail Strategy Shows Uneven Results

Tony Volpon, a managing director at Nomura Securities International in New York, says that while the rate cut is welcome news, it was expected.

FORBES: Brazil Lowers Interest Rates, But Risks Remain

"The tax compromise will keep the economy on track, but there's the question of how we're going to pay for this, " said George Goncalves, head of U.S. rates strategy at Nomura Securities International, who has been bearish on Treasurys since mid-October.

WSJ: Tax-Cut Deal Results in Turmoil for Bonds