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SUNDAY, JULY 5, 2009

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Citi Takes $9.83B Loss, $18B in Writedowns

(Newser Summary) – Citigroup announced $18 billion in writedowns and a $9.83-billion fourth-quarter loss today as a relentless torrent of mortgage defaults has brought the banking giant to its knees. The $1.99-per-share loss is the largest in Citi’s 196-year history, Bloomberg reports. Citi, struggling to recapitalize, also reported US and foreign investors—including Kuwait and Singapore—have agreed to a $14.5-billion cash infusion.

Citi’s record losses are nearly double the company's estimates as recently as November, and compare to a $5.1 billion, $1.03 per share, profit in last year’s fourth quarter. The largest US bank will cut its dividend 41% and eliminate 4,200 jobs; Citi's writedowns are the highest of any bank in the world. “There’s more bad news to come,” said one analyst.
Sources: Bloomberg, Wall Street Journal

More about:  subprime crisis • subprime mortgages • Citigroup • corporate earnings

The Citigroup Center, left, is reflected in a neighboring...
The Citigroup Center, left, is reflected in a neighboring building on Monday, Nov. 5, 2007 in New York.   (Associated Press)
Citigroup Inc. provided this file photo Vikram Pandit....
Citigroup Inc. provided this file photo Vikram Pandit. The ascension of Indian-born leaders like Pandit, the new CEO of Citigroup Inc., tracks the economic rise of their home country, once seen by U.S....   (Associated Press)
Sign on the Citigroup office tower 11 April, 2007...
Sign on the Citigroup office tower 11 April, 2007 in New York.   (Getty Images)
A Citibank office is shown on Tuesday, Nov. 27, 2007...
A Citibank office is shown on Tuesday, Nov. 27, 2007 in New York.   (Associated Press)
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