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April 18, 2008
Knives Out at Citi
Citigroup is preparing for more surgery as it reports another big quarterly loss and additional write-downs as a result of the credit crunch. The bank has already been cutting jobs—more than 4,000 announced earlier this year—reorganizing businesses and selling some units, like Diners Club.
The bank took $12.1 billion in write-downs: $6 billion on investments related to subprime mortgages, $3.1 billion on leveraged loans, $1.5 on its exposure to bond insurers, and $1.5 billion on its inventory of auction-rate securities. Citi is also accounting for an increase of $3.1 billion in credit costs tied to consumer lending.
Posted by S. Germain at April 18, 2008 08:23 AM