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

Record Q4 loss offset by $14.5B cash infusion from Singapore, Kuwait
By Caroline Miller,  Newser Staff
Posted Jan 15, 2008 6:03 AM CST
The Citigroup Center, left, is reflected in a neighboring building on Monday, Nov. 5, 2007 in New York.    (Associated Press)
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(Newser) – 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.